First year as a Resident working as a freelance translator Thread poster: pcs_MCIL
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I became a US resident on March 1, 2013 and I am currently supporting myself with translations, only. I read that being self-employed I have to pay taxes every quarter, but when I tried to fill an online tax return before the first due date (April 15), all of the forms referenced to 2012 - when I wasn't a resident yet.
I am a Florida resident, so my issue concerns federal taxes, only.
Also, how do you pay taxes? Through a check, bank transfer, credit card?
Thank ... See more I became a US resident on March 1, 2013 and I am currently supporting myself with translations, only. I read that being self-employed I have to pay taxes every quarter, but when I tried to fill an online tax return before the first due date (April 15), all of the forms referenced to 2012 - when I wasn't a resident yet.
I am a Florida resident, so my issue concerns federal taxes, only.
Also, how do you pay taxes? Through a check, bank transfer, credit card?
Thank you! ▲ Collapse
| | | | Liviu-Lee Roth
United States
Local time: 08:10
Romanian to English
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It does not matter when you became resident alien (Green card) in the US. The question is when did you start working legally in the US (based on a permit to work). If you worked in 2012, you must pay taxes.
Don't worry about the quarterly taxes. At this point in time you have no idea about your future earnings, therefore, forget about it.
You can pay taxes in any way it fits you (check, online, credit card etc.) Uncle Sam does not mind the way he gets your money. ... See more It does not matter when you became resident alien (Green card) in the US. The question is when did you start working legally in the US (based on a permit to work). If you worked in 2012, you must pay taxes.
Don't worry about the quarterly taxes. At this point in time you have no idea about your future earnings, therefore, forget about it.
You can pay taxes in any way it fits you (check, online, credit card etc.) Uncle Sam does not mind the way he gets your money.
Lee ▲ Collapse
| | | | Nicole Schnell 
United States
Local time: 05:10
English to German
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In memoriam | Contact a CPA who is specializing in small business and foreign business | Jun 5, 2013 |
A CPA, not some garden-variety tax preparer for personal taxes. There is too much at stake and too much that you can do wrong when it comes to filing taxes as a business. I remember the first year when my tax preparer messed up our tax return as an LLC, and the IRS called me and claimed that the wrong forms were used, which equals not filing taxes at all - a serious offense. As a first-time offense they generously waived the monstrous penalty. The next tax preparer, this time a CPA, happened to ... See more A CPA, not some garden-variety tax preparer for personal taxes. There is too much at stake and too much that you can do wrong when it comes to filing taxes as a business. I remember the first year when my tax preparer messed up our tax return as an LLC, and the IRS called me and claimed that the wrong forms were used, which equals not filing taxes at all - a serious offense. As a first-time offense they generously waived the monstrous penalty. The next tax preparer, this time a CPA, happened to mess up our tax ID for the state due to a transposed number in the tax return. To this date we have to deal with ongoing correspondence because of this SNAFU.
This all is the result of trying to save money on tax preparation. ▲ Collapse
| | | | pcs_MCIL
English to Italian
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TOPIC STARTER
lee roth wrote:
The question is when did you start working legally in the US (based on a permit to work). If you worked in 2012, you must pay taxes.
I never worked in the US before, so that's really helpful to know.
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Nicole Schnell
United States
Local time: 05:10
English to German
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In memoriam | Exactly - why quarterly at this point? | Jun 5, 2013 |
lee roth wrote:
Don't worry about the quarterly taxes. At this point in time you have no idea about your future earnings, therefore, forget about it.
Quarterlies are based on forecasts and are therefor calculated on the basis of your income in prior tax years. Quarterlies are advance payments, it doesn't mean that your taxes are calculated for the past three months each time.
You can pay taxes in any way it fits you (check, online, credit card etc.) Uncle Sam does not mind the way he gets your money.
They also accept real estate, your soul, your spouse and kids, valuable pets, vehicles and any descendants for the next five generations.
| | | | pcs_MCIL
English to Italian
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TOPIC STARTER | Not a business | Jun 5, 2013 |
Nicole Schnell wrote:
A CPA, not some garden-variety tax preparer for personal taxes. There is too much at stake and too much that you can do wrong when it comes to filing taxes as a business.
I am not operating as a company, just as individual. I thought a generic HR Block would suffice - but thanks for the heads up.
| | | | Nicole Schnell
United States
Local time: 05:10
English to German
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In memoriam | You need information about state regulations | Jun 5, 2013 |
Paola Slajmer wrote: Nicole Schnell wrote:
A CPA, not some garden-variety tax preparer for personal taxes. There is too much at stake and too much that you can do wrong when it comes to filing taxes as a business. I am not operating as a company, just as individual. I thought a generic HR Block would suffice - but thanks for the heads up.
Some states require all persons who conduct business to have a license. You also need information about the income threshold in your state. You stated that you just received your Green Card - which will be a conditional one for the next two years. I'd rather do things by the book, if I were you.
| | | | Abba Storgen (X)
United States
Local time: 07:10
Greek to English
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| You are a business | Jun 5, 2013 |
Paola Slajmer wrote:
I am not operating as a company, just as individual. I thought a generic HR Block would suffice - but thanks for the heads up.
You are a business. Prepare for some heavy taxes - though the fact you' re in Florida means considerable savings.
Separate your business expenses from personal expenses - and better contact a good CPA specializing in small business and professionals.
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Nicole Schnell
United States
Local time: 05:10
English to German
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In memoriam | Eleftherios is right. | Jun 5, 2013 |
Eleftherios Kritikakis wrote:
You are a business. Prepare for some heavy taxes - though the fact you' re in Florida means considerable savings.
That's what I meant with income threshold - you might be allowed to earn up to maybe $600 / month, depending on state regulations. Anything beyond is considered "being paid under the table" and is illegal.
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