USA Taxes and side hustle


#1

Anyone know of good articles related to contract working and having to pay in your own taxes?

My wife started working for VIPKIDS (teaching Chinese kids English) and we have to pay in ourselves. Figured you all would know the best resources than me trying to Google for hours


#2

No actual answer here . . . sorry.

But, I love typing in google for hours. You could learn so much stuff - that you’ll never actually use. :grin:


#3

I’ve got one on estimated taxes

In general your taxes will be the same as w2 except you’ll pay self employment tax 15.3 percent of which half is the employer portion of social security and Medicare. You can also write off business expenses and contribute to a solo 401k


#5

You are essentially an independent contractor for VIPKid, therefore you would put your business profit on Schedule C-EZ and FICA taxes on Schedule SE. They’ll send you a 1099 if you earn moe than $500 this year. If you have any expenses you can write off against the income, you’d put that on Schedule C-EZ (might have to use the more complex Schedule C)


#6

I’ve got a post I wrote up a few months ago here that might be a decent starting point:


#7

http://birdsofafire.com/index.php/2017/12/23/i401k-or-sep-ira-an-extra-54000-in-tax-advantaged-retirement-accounts-a-year/

I wrote a short post in favor of an i401k for your side hustle – it’ll help to lower taxes and now you can sock away more than double the amount in your two 401ks! Also, be sure to look at pass throughs (LLCs) given the new tax bill that is going through (cap at 21 percent).