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2 Another option: look into tax prep services that aren't full CPAs but still offer professional help. Places like H&R Block or local tax offices often have availability even this late. They might not give you the same level of strategic advice as a dedicated CPA, but they can definitely handle 1099 income and basic deductions. Many of these places also offer audit protection for an additional fee, which gives some peace of mind. I used a local tax service last year when I was in a similar situation (half W-2, half 1099 income) and it worked out fine.
4 Do these services charge a lot more for handling 1099 income? I've heard they upcharge significantly once you mention self-employment.
2 They do typically charge more for 1099 income compared to simple W-2 returns, but it's usually based on complexity rather than a flat upcharge. In my experience, it was about $75-100 more than what friends paid for their W-2-only returns. The main factor is how many different 1099s you have and whether you have organized expense records. If you come prepared with categorized expenses and clear records, they can process everything more quickly which keeps the cost down. Most places will give you a price estimate upfront after a quick look at your situation.
17 Don't forget about the extension option! File Form 4868 by April 18th and you'll get until October 16th to actually submit your return. You still need to pay estimated taxes by April 18th to avoid penalties, but it gives you time to find a good CPA who isn't in the middle of tax season chaos. I'm self-employed too and I always file an extension just to avoid the rush. My CPA charges less after the deadline too because they're not as swamped.
Filing taxes might still be beneficial for you even if you receive SSI and are experiencing homelessness. If you had any income besides SSI during the year (like part-time work), you might qualify for refundable tax credits like the Earned Income Tax Credit, which could result in a refund. SSI benefits themselves aren't taxable income, so you're not required to file if SSI was your only income. However, filing could still be worthwhile if you had any tax withheld from other income sources. As someone experiencing homelessness in Pinellas County, you can get free tax preparation help through VITA (Volunteer Income Tax Assistance) programs. The St. Petersburg Free Clinic and other local organizations offer these services. You don't need a permanent address to file - you can use a shelter address, general delivery at the post office, or even a trusted friend's address. Filing might connect you with benefits you didn't know you qualified for, so it's generally worth checking into, especially when free help is available.
Quick question - does anyone know if setting up a payment plan affects your credit score? I'm trying to buy a house soon and I'm worried this might mess that up.
Whatever you do, DON'T ignore this. I made that mistake and ended up owing way more in penalties and interest. Face it head-on, even if it's scary.
Natasha Orlova
Has anybody else had the same confusion between self-employment tax vs. income tax? I've been working as an independent contractor for 2 years and STILL don't fully understand why my effective tax rate is so high compared to when I was just a W-2 employee.
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Javier Cruz
•The biggest shock for me was realizing that when you're self-employed, you pay BOTH halves of FICA (Social Security and Medicare). As an employee, your employer pays half and you pay half, but self-employed folks pay the whole 15.3%. Then on top of that, you're still paying regular income tax! What helped me was setting aside 30% of every payment I receive for taxes. It sounds high but it's better than being surprised with a huge bill at tax time.
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Natasha Orlova
•That makes so much sense! No wonder I've been getting hit so hard. I was only setting aside about 15% thinking that would cover it. Guess I need to bump that up to 30%.
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Emma Thompson
One thing I didn't see mentioned here - you might benefit from changing your business structure. If you're currently a partnership or sole proprietor, you might save on self-employment taxes by setting up as an S-Corp. You'd pay yourself a reasonable salary (which would still have FICA taxes) but could take the rest as distributions that aren't subject to self-employment tax. At $24k it might not be worth the extra compliance costs, but if your business income is growing, it's definitely something to consider for next year. Saved me about $4k last year on $85k of business income.
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