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1099 Management Service Plan
Are you Self Employed or an Independent Contractor? If so,
Self Employed/Independent Contractor Obligation Plans
- Plan 1: Business Structures.
You carry on a trade or business as a sole proprietor or an independent contractor.
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. At BTG, we guide you to conduct the business operations in the right structure.
- Plan 2: Information Return Requirement.
If you made or received a payment as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. At BTG, we help you make the best decision that applies to your need and goals.
- Plan 3: Make Quarterly Tax Payments.
Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals (PDF), is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will need your prior year’s annual tax return in order to fill out Form 1040-ES. At BTG, we help you make your quarterly tax payments on time and efficiently.
- Plan 4: File Annual Tax Return.
Plan 4- File Annual Tax Return To file your annual tax return, you will need to use Schedule C (PDF) or Schedule C-EZ (PDF) to report your income or loss from a business you operated or a profession you practiced as a sole proprietor. At BTG, we help you file your annual tax return before tax deadlines and develop applicable tax credits plan.
- Plan 5: Bookkeeping.
You carry on a trade or business as a sole proprietor or an independent contractor.
There is a need of an occupation of keeping records of the financial affairs of a business.
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. At BTG, we track your records; reconcile accounts, payable, receivables and more. We save you time and easily send invoices, manage expenses, and track company data.
“Choose a BTG Plan to serve your needs as a Self Employed/Independent Contractor”
Top 5 Financial Tips
- 1: Decide on financial goals.
For some people, there's nothing more appealing than saving for a three-bedroom house with a white picket fence. Others dream of taking a trip around the world or a sabbatical from work. Choosing your money goals makes it easier to work toward them.
- 2: Create a spending plan.
Most people spend about two-thirds of their income on three essentials: food, housing and transportation. Then there are debt payments, savings, household costs and optional items such as entertainment to consider. Create an annual budget by allocating spending goals for each category.
- 3: Resist retailers' enticements.
Stores are in the business of getting us to spend money, but if we know their tricks, we can better resist the temptation. Rewards cards, enticing smells (like cinnamon around the holidays) and short-term flash sales are a few of the techniques retailers use; being aware of them can make it easier to just say "no."
- 4: Track your spending.
Keeping track of every expenditure over a two-week period can offer insight into unnecessary wastes, from restaurant meals to cab rides. You can use a pen and pencil or take advantage of free online tools, such as Mint.com or those offered by your financial institution.
- 5: Don't accept posted prices.
Prices are often a lot more negotiable than you think, even in big-box department stores. If you've seen a lower price listed elsewhere, don't hesitate to ask the store clerk if they can match it. The worst-case scenario is they'll say "no."
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Top 10 IRS Tax Tips
- 1: Contribute to retirement accounts.
If you haven’t already funded your retirement account for 2014, do so by April 15, 2015. That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA. However, if you have a Keogh or SEP and you get a filing extension to October 15, 2015, you can wait until then to put 2014 contributions into those accounts. To start tax-free compounding as quickly as possible, however, don’t dawdle in making contributions.
- 2: Make a last-minute estimated tax payment.
If you didn’t pay enough to the IRS during the year, you may have a big tax bill staring you in the face. Plus, you might owe significant interest and penalties, too.
If you make an estimated payment by January 15, though, you can erase any penalty for the fourth quarter, but you still will owe a penalty for earlier quarters if you did not send in any estimated payments back then. But if your income windfall arrived after August 31, 2014, you can file Form 2210: Underpayment of Estimated Tax to annualize your estimated tax liability, and possibly reduce any extra charges.
- 3: COrganize your records for tax time.
Good organization may not cut your taxes. But there are other rewards, and some of them are financial. For many, the biggest hassle at tax time is getting all of the documentation together. This includes last year’s tax return, this year’s W-2s and 1099s, receipts and so on.
If you really want to make tax season go smoothly, use a personal finance software program like Quicken throughout the year so you have easy access to all the information you need.
- 4: Find the right tax forms.
You won’t find all of them at the post office and library. Instead, you can go right to the source online. View and download a large catalog of forms and publications at the Internal Revenue Service Web site or have them sent to you by mail. You can search for documents as far back as 1980 by number or by date.
- 5: Itemize your tax deductions.
It’s easier to take the standard deduction, but you may save a bundle if you itemize, especially if you are self-employed, own a home or live in a high-tax area. It’s worth the bother when your qualified expenses add up to more than the 2014 standard deduction of $6,200 for singles and $12,400 for married couples filing jointly. Many deductions are well known, such as those for mortgage interest and charitable donations. However, taxpayers sometimes overlook miscellaneous expenses, which are deductible if the combined amount adds up to more than two percent of your adjusted gross income. These deductions include tax-preparation fees, job-hunting expenses, business car expenses and professional dues.
- 6: Don't shy away from a home office tax deduction.
The eligibility rules for claiming a home office deduction have been loosened to allow more filers to claim this break. People who have no fixed location for their businesses can claim a home office deduction if they use the space for administrative or management activities, even if they don’t meet clients there. Doctors, for example, who consult at various hospitals, or plumbers who make house calls, can now qualify. As always, you must use the space exclusively for business.
- 7: Provide dependent taxpayer IDs on your tax return.
Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny the personal exemption of $3,950 for each dependent and the $1,000 child tax credit for each child under age 17.
Be especially careful if you are divorced. Only one of you can claim your children as dependents, and the IRS has been checking closely lately to make sure spouses aren’t both using their children as a deduction. If you forget to include a Social Security number for a child, or if you and your ex-spouse both claim the same child, it’s highly likely that the processing of your return (and any refund you’re expecting) will come to a screeching halt while the IRS contacts you to straighten things out.
- 8: File and pay on time' enticements.
If you can’t finish your return on time, make sure you file Form 4868 by April 15, 2015. Form 4868 gives you a six-month extension of the filing deadline until October 15, 2015. On the form, you need to make a reasonable estimate of your tax liability for 2014 and pay any balance due with your request.
- 9: TFile electronically.
Electronic filing works best if you expect a tax refund. Because the IRS processes electronic returns faster than paper ones, you can expect to get your refund three to six weeks earlier. If you have all your documents in order, go ahead and file electronically in January using software like one of the TurboTax programs. If you have your refund deposited directly into your bank account or IRA, the waiting time is even less.
- 10: Decide if you need help.
Bridging The Gap, LLC can handle the most complex returns with ease (and allow you to file your taxes electronically for a faster refund). You just need to answer simple questions, such as whether you've had a baby, bought a home or had some other life-changing event in the past year. BTG will then fill out all the right forms for you.