“The fact is that most independent contractors have no clue as to how to file their taxes, what filing status best meets their needs, or what business structure (sole-proprietorship, LLC, or Corporation) is best suited for them,” said tax relief expert, Russ Pierpont. “Even more daunting is the fact that a minimal percent have a clue as to what expenses are eligible and what will red flag a filing for an audit.”
Independent contractors must submit their federal taxes with a 1099 which is taxed at a higher rate than what most people filing with a W2 would expect to pay due to the self-employment tax. According to Pierpont, it isn’t unusual for people to make mistakes with their taxes.
We typically deal with consumers that are already in trouble and owe money for either state or federal taxes. Obviously, the amount depends on income and expenses. The average debt-load for a client is $31,000, however some owe $200,000.
“We typically deal with consumers that are already in trouble and owe money for either state or federal taxes.” said Pierpont. “Obviously, the amount depends on income and expenses. The average debt-load for a client is $31,000, however some owe $200,000.”
For tax help, every person filing taxes as an independent contractor should ask themselves these questions:
- Are you in the best business structure to best minimize tax liabilities?
- Do you understand what expenses you are entitled to utilize?
- What write-offs red flag your return for an audit?
- Are you filing quarterly returns and making quarterly payments to avoid unaffordable balances at the end of the year?
- Are you working with an Enrolled Agent? The only federally authorized tax professional?
- Do you use an accounting software program daily, weekly, etc.?
Many people who worked as an independent contractor in 2012 or before wait until it’s too late to start asking these questions and find that they owe a large bill when April comes around, according to the experts at Tax Help MD.
Options exist for those filing taxes as an independent contractor in this situation. When looking for tax help, tax payers should look for a company whose tax experts are licensed directly by the IRS. Tax Help MD is one of the few tax relief companies that has an onboard Federally Enrolled Agents that perform the work.
Choosing the correct company to hire for your tax help is important, if you choose the wrong company you could find yourself paying even more.
Looking for a Tax Help? My Tax Help MD is a professional tax relief providing platform that can provide you meaningful IRS tax relief services. We have helped many Americans in dealing with their tax filing and payments. If you have a busy schedule or you can’t handle the process required for your tax file, you better consult us to get the things done in a professional manner for you. We provide the best IRS audit help in the United States.