Saturday, January 17, 2009

2008 Tax filing progress.

I’ve had issues with SSA.GOV. Their website won’t accept my employer information even after I sent them a printed form. So I went with another method to submit my W-2/W-3 information to the government.

filetaxes.com
It’s a nice website where you can file a few of the basic business related forms electronically. The prices are around $5 a form, which isn’t bad for someone in my situation. Recently, I submitted my quarterly 941 form using that service. I had an issue with the “name control” field on the return, but hopefully my second attempt will work (they allow corrections and re-submissions).

So seeing as the SSA.GOV site isn’t working for me, I opted to use filetaxes.com. Did the calculations I needed and submitted through them. Upon receipt, they say I do not need to file a W-3, so that will save time.

The calculations consisted of adding up the estimated payments I did to federal income tax, social security, medicare, and state income tax. Seeing as I opted to be taxed as an s-corporation, I designate half of my invoice money to self-pay. This is the amount I use to calculate payroll taxes.

I also had to figure out the special codes that relate to extras like 401K plans. I made one payment to my self-employed 401K in the amount of $450, so on the w-2 form it would be “D 450.”

Well I have to say, so far it has been quite the learning experience.

(Edit: For some reason, W-2 calculations always threw me for a loop. Be careful how you calculate all of the W-2 fields. Make sure to exclude “self employment tax” from the total deductions as it is not technically part of a person’s tax.)

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