not paying any taxses how do i start

[jusclaandus]

What is the name of your state?maryland


my boyfriend does'nt get taxes taken out of his paycheck at the end of the year he'll have to file his taxes and pay where trying to figure out how much he'll have to pay based off a $40,000,00 income he wants to start saving money and getting together as much tax debuctible stuff he can to make the amount he will owe some what less his job as him as self employeed

what can we do to help him not get screwed and end up oweing like $20,000.00 next tax season

is the tax rate 5% on the dollar?

 

[Snipes5]

I can't tell from your post whether your boyfriend is self-employed or an employee.

If he is self-employed, he should save 25% of his pay for taxes.

Self-employment taxes are approximately 15% of that, and the rest will go towards whatever his tax bracket is.

In addition, he should be paying estimated taxes quarterly. He missed the first payment, which was due on April 15th for tax year 2005, the other three payments for '05 are due June 15, September 15, and January 15, 2006.

If his income is as indicated above, he will want to send about $1000 on each of the next three estimated tax due dates. Be sure to include his SSN on the check, and the words "tax year 2005". You can download estimated tax forms from the IRS website, the form number is 1040ES.

If you think the tax rate is 5% on the dollar, what would make you think he would owe 50% of his gross income ($20,000) as tax? This is, after all, the US, not Canada.

The lowest tax rate is 10%, then 15%, 25% and up. Net income of $40,000 will be squarely in the 15% bracket, with some in the 25% bracket. Those rates are separate from self employment taxes which are in addition to income tax.

If all this is too much for you, have your boyfriend visit the nearest H&R Block office, they will give him free advice on how to proceed.

Snipes