Paying taxes as an independent tutor

Tutors who are working independently have be aware and plan ahead for paying taxes. Unlike someone who is getting a paycheck with taxes taken out each week, they are getting paid by their clients. This toolset will help tutors understand what they have to do so they are not bombarded with payments during tax season.

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    Self-Employment Tax (Social Security and Medicare Taxes)

    Being self-employed there will be special tax forms you must fill out when completing your federal taxes. You must pay self-employment tax and file the Form 1040 if your net earnings were over $400. This article on the IRS website explains in detail what the tax is and who has to pay the self-employment tax. Basically, it is a tax for Social Security and Medicare for people who do not have taxes withheld from their income. This page is where you will also find the Form 1040, which is what you will fill out.

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    Form 1040

    If you have to pay the self-employment tax, this would be the form you would fill out. Obviously, this is from last year but it will give you an idea of what you will be doing. Once it is closer to being time to file taxes the new form will be available on the IRS website.

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    Estimated Taxes

    Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

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    Tax-Filing Information for Tutoring

    Whether you're a teacher who helps students brush up on their basics on the weekends, a college student who earns extra cash by lending your expertise to your classmates or a full-time self-employed tutor, you're engaged in a business activity, and the Internal Revenue Service requires you to pay taxes on your income.

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    Facts & Figures 2013: How Does Your State Compare?

    This is a site where you can see the tax rate for your state. Since each state is different, you will have to check out your state's policy to figure out your taxes.

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