How do I calculate my taxes?
- How do I calculate my taxes?
There are two types of tax calculations: federal and state. Federal taxes are calculated based on income earned in the US. State taxes are calculated based on where you live. You may have both federal and state taxes depending on where you live. If you earn less than $100,000 per year, then you only pay federal taxes. If you make over $100,000, then you will need to file both federal and state taxes.
- What if I owe money to the IRS?
If you owe money to the IRS, you will need to pay them back. There are different ways to pay back the IRS. One way is to use their online payment system called Paypal. Another way is to send a check to the address listed below.
IRS Address:
Payroll Tax Service Center
P.O. Box 979
Cedar Rapids, IA 52401-0979
- Do I need to file a 1099?
Yes, you should file a 1099 for any payments you receive above $600. A 1099 is a document that shows how much you received and what type of business you were paid for.
- Can I deduct expenses on my taxes?
You can deduct some expenses on your taxes. These deductions are known as itemized deductions. You can deduct these expenses on your taxes if they exceed 2% of your adjusted gross income (AGI). Your AGI is the total amount of money you earned before taxes. To figure out your AGI, add together your W-2 wages, interest, dividends, alimony, child support, unemployment compensation, tips, and bonuses. Then subtract any non-taxable amounts.
- How do I keep track of my expenses?
You can use software to help you keep track of your expenses. Software programs allow you to enter information about your expenses and categorize them. You can also set up alerts to let you know when you spend more than expected.