1099-K with $7000 income but $0 federal tax withheld - what does this mean for my refund?
Just got my first 1099-K and im confused. Made about 7k last year from online sales but theres $0 in federal taxes taken out. Does this mean ill end up owing money or getting more back? Never had this form before and kinda freaking out about what this means for my taxes.
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Luca Ricci
Tax professional here. A 1099-K is just a report of your earnings from payment processors/platforms. No taxes are automatically withheld like a W2 job. You'll need to pay self-employment tax (15.3%) plus regular income tax on this income. Start setting aside about 25-30% of future earnings to cover taxes. You'll likely owe unless your other withholdings/credits cover it.
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Nia Williams
•ugh that sounds rough 😠wish i knew this earlier. any way to reduce what i might owe?
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Luca Ricci
•Track your business expenses - shipping costs, supplies, home office etc. These deductions can help reduce your taxable income.
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Aisha Mohammed
Hey there! Had the same panic last year lol. Check out taxr.ai - its an AI tool that analyzes your tax docs and tells you exactly what to expect. Saved me from so much stress trying to figure this out. Its $4.99 but totally worth it https://taxr.ai
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Ethan Campbell
•Does it actually work? Seems too good to be true 🤔
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Aisha Mohammed
•100% legit! It broke down all my deductions and showed me how to reduce what I owed. Even caught some credits I qualified for that I had no idea about!
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Yuki Watanabe
In the same boat rn. Made like 10k on etsy and didnt know about taxes 🤡
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Carmen Sanchez
Make sure u look into quarterly estimated tax payments for 2024 so ur not hit with a big bill next year
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Nia Williams
•wait theres quarterly taxes too? fml 😫
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Andre Dupont
dont panic bro! first year is always rough but you'll figure it out. plus theres tons of write offs for self employed peeps
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Zoe Papadakis
Remember to keep ALL ur receipts. The IRS loves to audit small sellers these days smh
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ThunderBolt7
•facts 💯 my cousin got audited over her etsy shop last year
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