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Category: Tax
Satisfied Customers: 3820
Experience:  over 40 years experience in tax matters
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i,m going to make a gross of 54,000.00 dollars this year...but

Resolved Question:

i,m going to make a gross of 54,000.00 dollars this year...but i have a family of 3 ..i,m claiming head of household my mom whos on diabilty and my 4 year old boy...he has daycare expenses which exceeds close to 8,000.00 dollars in addition i have drove my vehicle business close to 7500 miles this year alone
Submitted: 5 years ago.
Category: Tax
Expert:  CGCPA replied 5 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

What is your question?

Customer: replied 5 years ago.
in addition i have donated his old clothes and some of my old clothes in the amount of about 1,300.00 dollars and car repairs exceeding over 1,200.00 and finally my cleaning expenses close to 800.00...i,m a cleaning contractor please let me know thanks
Expert:  CGCPA replied 5 years ago.

This will be a standard deduction return. The numbers will appear as follows:

Schedule C

Gross 54,000


Supplies, etc -800

Auto use -3825 (at standard mileage rates)

Net income 49,375

Less Standard deduction -8500

Less Exemptions -11,100

Taxable income 29,775

Tax 3,876

Less Child care credit -810

Less Child tax credit -1000

Net tax 3,066

Plus self employment tax 6,074

Total tax 9,140

Less additional child tax credit -1000

Net tax 8,140

Then subtract any estimated tax paid in to get the tax you still owe.

Customer: replied 5 years ago.
so will i owe..plain and simple yes or no ...thats why im asking you
Customer: replied 5 years ago.
so will i owe..plain and simple yes or no ...thats why im asking youif so how much..i need to know so i can do my budget
Customer: replied 5 years ago.
Relist: Incomplete answer.
Expert:  CGCPA replied 5 years ago.
The tax you will owe is approximately $8,140. If you have made estimated payments they can be subtracted from that amount. I provided my calculations to let you see why the tax bite is as large as it is. The primary culprit is the Self Employment tax ($6,074) which is, in simple English, Self employed Social Security and Medicare taxes. To help get this down to livable levels, I recommend that you carefully review all records to see if there are additional business expenses you can deduct. Every dollar in additional business expenses will save you approximately $.40. Well worth the effort to look again.
Customer: replied 5 years ago.
so i,m claiming 3 people i earn 30,000 dollars off my state job university level and approximate then approximate 25680 dollars for self employed is it any beter.
Expert:  CGCPA replied 5 years ago.
It gets much better. You save approximately $3700 in Self Employment taxes. Then your total tax due will be reduced to $4440 less any taxes withheld by the employer.
CGCPA and other Tax Specialists are ready to help you