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Hello I'm Bill.
Hello Bill i am Dwayne
I guess what i am basically trying to find out is how do i go about finding the tax amount on the alternate income i have started getting just this yr of 1000 a month. I have always gotten back well over a 1000 every yr and i dont want that to stop
You are considered a self employed day care provider for this family member and do you receive $1,000 for the entire year or monthly?
Ok so you perform these services in your home?
yes he lives with me
actually now you are getting much more involved than anyone else so here goes.....i was asked by my sister to move in with her and take care of my brother who already lives with her.He gets a check from disability and this is what she pays me from i also still have my regular job
I dont want to screw up my refund which i have always gotten do i need to pay in more at my regular job
i only make 12 bucks an hour at my regular job
You could take deductions for the percentage of your home that is used for day care, If you share this home with your relative you could take a deduction for maybe up to 50% of yur household expenses like rent or mortgage interest, taxes, utilities, insurance etc.
i pay no bills here that is also part of the deal for taking care of my brother
she gives me like half of his checks
i guess what the question boils down to is what should i pay in on my regular job to cover what i make from my brother
I would think you would be best off by paying at least another $250 each month in income tax to cover your taxes on your income from watching your brother.
You could also make quarterly estimated payments to the IRS for $750 each.
wow that much even though i pay in as much as i do at my regular job.. botXXXXX XXXXXne you are saying that the taxes on 12000 is over 3000
You would be paying your income tax and social security/medicare taxes.
Where ou work they take out from your paychecks all these taxes
except where you work you pay only half of the social security/medicare tax when you have a day care business you ay all the ss/med taxes.
i just take care of my brother in my sisters home which has become my home also
so basically like i asked when i get a check for 1000 dollars i should send a third of it for taxes
As long as this is your arrangement where you are receiving this $1,000 a month to take care of your brother I would say yes.
Who pays the rent, mortgage, utilities etc? Your sister?
Let me know if any more questions from you. I would say if you pay in at least $250 a month you should still get a refund at the end of the year.
If satisfied please accept my answer.
Good night now.