Both the Form W-2 and Form 1099 serve a similar purpose—to report income you earned from sources throughout the tax year—but each is issued under different circumstances and requires slightly different approaches for tax season planning. Here are some
while the Medicare tax rate is 2.9% – for a total self-employment tax rate of 15.3%. However, unlike FICA taxes, which are evenly split between the employer and employee (7.65% each), self-employed people
Withholding Tax Explained: Types and How It's Calculated
Make sure that you understand the differences between gross income and earned income before you prepare and file atax return. Gross income is considered total income for the purpose of tax preparation and filing. It is used to further determine your totaltax liability. Gross income is the startin...
As a general or limited partner, you’ll receive a K-1 form reporting your share of income and expenses. You’ll include this information on your personal income tax return via the Schedule E, which flows to Schedule 1 and ultimately to Line 8 on the Form 1040. ...