Search found 93 matches

by Bones_Jones
Sat Mar 02, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Another strong voice for at least consider not being penny wise... Of cause this is your life and you do what you like, also there is nothing magical in what good specialist (CPA, attorney, surgeon, car mechanic) does , and yes, in theory you can do some/all of it yourself. However, if you need sur...
by Bones_Jones
Sat Mar 02, 2019 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

anyway 1 last question- i just want to confirm that i should be doing this right? https://blog.foxwealthmgmt.com/2019/02/16/backdoor-solo-401k-plans/ 1.Open a SEP IRA account in the current year for the prior year. You have until the due date of your income tax return, including extensions (October...
by Bones_Jones
Fri Mar 01, 2019 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

anyway 1 last question- i just want to confirm that i should be doing this right? https://blog.foxwealthmgmt.com/2019/02/16/backdoor-solo-401k-plans/ 1.Open a SEP IRA account in the current year for the prior year. You have until the due date of your income tax return, including extensions (October ...
by Bones_Jones
Fri Mar 01, 2019 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Another strong voice for at least consider not being penny wise... Of cause this is your life and you do what you like, also there is nothing magical in what good specialist (CPA, attorney, surgeon, car mechanic) does , and yes, in theory you can do some/all of it yourself. However, if you need sur...
by Bones_Jones
Fri Mar 01, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

i understand that i need to hire CPA at certain point but turbo tax gave me the QBI deduction already(which i didn't even know!)... and filing taxes via turbo tax was very easy... all it does is asking me hundreds of questions and all i'm just answering them. and i really hate to pay somebody $1500+...
by Bones_Jones
Fri Mar 01, 2019 7:32 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

ok, so i can convert my sep ira that i created last year to solo K for 2018 tax purpose, right? also regarding 199a - this is QBI deduction correct? i read that after 315k it will phase out, so if i make 375k a year my deduction is only 8%, but if i put away 60k to solo 401k(after backdoor) i get 20...
by Bones_Jones
Thu Feb 28, 2019 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

found this article https://blog.foxwealthmgmt.com/2019/02/16/backdoor-solo-401k-plans/ Open a SEP IRA account in the current year for the prior year. You have until the due date of your income tax return, including extensions (October 15 for individuals), to do this. Contribute 20% of net profits fr...
by Bones_Jones
Thu Feb 28, 2019 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

I know nothing about the medical field, but others may be able to chime in on the related issue of incorporation or LLC and liability. And if it does make sense to go that route, you need to separate the business side, payments, accounts, etc. to get the liability protection, even though it may not...
by Bones_Jones
Thu Feb 28, 2019 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Up to a certain income solo401k is better since you get to contribute as employer and employee. Max SEP contribution 2019 is 56,000 Max solo401k in 2019 is also 56,000. If you are age 50 plus, there is an extra 6000 with a solo401k, so it becomes a max of 62,000 ! Both allow you to contribute about...
by Bones_Jones
Thu Feb 28, 2019 8:31 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Up to a certain income solo401k is better since you get to contribute as employer and employee. Max SEP contribution 2019 is 56,000 Max solo401k in 2019 is also 56,000. If you are age 50 plus, there is an extra 6000 with a solo401k, so it becomes a max of 62,000 ! Both allow you to contribute about...
by Bones_Jones
Thu Feb 28, 2019 7:38 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

OP... With all due respect... You are in WAAAAY over your head. You have absolutely no idea what you are doing, and turbo tax isn't going to cut it. Get off this forum, and go talk to a CPA. Seriously. Yes it might cost a good chunk of change. But you are going to make some serious mistakes if you ...
by Bones_Jones
Thu Feb 28, 2019 7:30 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

OP... With all due respect... You are in WAAAAY over your head. You have absolutely no idea what you are doing, and turbo tax isn't going to cut it. Get off this forum, and go talk to a CPA. Seriously. Yes it might cost a good chunk of change. But you are going to make some serious mistakes if you ...
by Bones_Jones
Sun Feb 17, 2019 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

thx! i guess i will stay sole prop then which is probably much simpler.

and i found this nice calculator and yeah it doesn't seem to make save me much if not at all.
http://www.calstartuplawfirm.com/Apps/e ... ulator.php

thank you guys again for sharing knowledge!
by Bones_Jones
Sun Feb 17, 2019 4:24 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

and back to my other question - so i guess s corp is no go? i really liked the idea of paying a reasonable salary to my wife and myself...
by Bones_Jones
Sun Feb 17, 2019 3:41 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Does your work in the different states mean you have to pay income tax in those states? Are you licensed in all of the states you are "practicing" in ? Are there gross receipts taxes on any states you are practicing in? (In my state, payments made directly to the Dr from the patient are t...
by Bones_Jones
Wed Feb 13, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

hi guys, i thank you for all the input here. i learned so much(still long long ways to go!). i didn't even know what the marginal tax rate was. that's how clueless i'm. this year i'm doing turbo tax and it's all good. and i considered hiring a pro, but i thought turbo tax wasn't too bad. i didn't ma...
by Bones_Jones
Thu Jan 03, 2019 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Going forward, an individual 401k with a Backdoor Roth is probably better than a SEP IRA. Also, does your wife have a individual 401k? This is a topic to discuss with your tax advisor. Find one that can help you with these topics and not just doing your tax return retroactively. Discuss your expens...
by Bones_Jones
Thu Jan 03, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

my wife never had to do estimated tax payments and she was a sole prop for past 10 years... we just did turbo tax. is estimated tax payments a recent thing? No, estimated taxes are not recent. However, you have two ways to ensure your total MFJ tax liabilty is made in a timely manner. Estimated tax...
by Bones_Jones
Thu Jan 03, 2019 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

i started SEP IRA recently. but since our tax bracket is 165000 - 315000 24%, it won't really matter much, no? even if i max contribute i'm still gonna be in that 24% bracket... This comment and some of your earlier comments make me think you don't understand how marginal tax brackets work. You don...
by Bones_Jones
Thu Jan 03, 2019 2:53 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

I would add that forming an LLC will not save you any taxes. By default a single member LLC is taxed as a sole proprietor. With ~$250K in net profit an S-Corp is likely to cost you more in taxes. This is because you "reasonable" compensation will need to be close to or > the SS maximum wa...
by Bones_Jones
Thu Jan 03, 2019 2:42 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

It sounds like you are going to be charged penalties for not having made estimated tax payments. I would seriously consider hiring someone to help you with this. You can then do it yourself in the future. i became self employed around august. so i had to pay taxes in advance? oh my gawd. i had no i...
by Bones_Jones
Thu Jan 03, 2019 1:49 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

ok, so i live in washington with no state tax. let's say i made 100k as an independent contractor. how much tax do i pay? turbo tax say i have to 27.3k i want to know why i have to pay 27.3k... Hi, I have been self employed for several years. 15% of gross income is a good place to start..but you wi...
by Bones_Jones
Thu Jan 03, 2019 1:46 am
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

thx for all the input...ok, so here is where i'm at.... i quit my job and i'm doing telemedicine. and for 2019 i believe i can somehere between 240- 260k+ using 4 different telemedicine platform. our income bracket most likely will be 165000-315000 24% bracket if filed jointly. i was planning to fil...
by Bones_Jones
Wed Jan 02, 2019 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

would my tax rate change if i formed an LLC? or even incorporated? this is all so new to me. i never had to worry about taxes because i was always employed..
by Bones_Jones
Wed Jan 02, 2019 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

darn it. i thought i would be saving a ton. i really hated crazy amount of taxes getting withheld..

thx guys
by Bones_Jones
Wed Jan 02, 2019 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Self-employment tax is the employer and employee portion of FICA (Social Security and Medicare). It is separate from and in addition to Federal (and state) income tax. So if you're in the 22% tax bracket, you'll pay somewhere south of 15.3% + 22% in Federal tax, taking into account the tax brackets...
by Bones_Jones
Wed Jan 02, 2019 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

ok, so please someone enlighten me on why it's 27.3k when i entered 100k 1099 misc. :confused
by Bones_Jones
Wed Jan 02, 2019 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

darn it. i thought i was paying 15.3 :D
by Bones_Jones
Wed Jan 02, 2019 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

and is there any way to save on taxes? form LLC? :shock:
by Bones_Jones
Wed Jan 02, 2019 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

ok, so i live in washington with no state tax.

let's say i made 100k as an independent contractor.

how much tax do i pay?

turbo tax say i have to 27.3k


i want to know why i have to pay 27.3k...
by Bones_Jones
Wed Jan 02, 2019 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

Rob5TCP wrote: Wed Jan 02, 2019 10:12 pm Does Turbo Tax include 12% for your F.W.T.?
what is F W T?
by Bones_Jones
Wed Jan 02, 2019 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

Re: self employed tax question

so i'm paying whatever i make + 15.3%? :shock:
by Bones_Jones
Wed Jan 02, 2019 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: self employed tax question
Replies: 81
Views: 5425

self employed tax question

hi guys, i'm self-employed. i'll be filing married separately. my first time being self-employed. and i'm little confused. every self employment or 1099 tax calculator says self employment tax is 15.3% IRS says it's 15.3% The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% f...
by Bones_Jones
Fri Nov 09, 2018 3:09 pm
Forum: Personal Investments
Topic: need help on picking SEP-IRA funds (fidelity)
Replies: 10
Views: 717

Re: need help on picking SEP-IRA funds (fidelity)

gotcha. so i should try to find fidelity equivalent of VBTIX VINIX VTSNX ? i'll do that now. or maybe i should open a vanguard account? :confused https://www.bogleheads.org/wiki/Three-fund_portfolio#Other_than_Vanguard.2C_Boglehead-style You can buy the Fidelity funds shown or any of the ETFs. $4.9...
by Bones_Jones
Fri Nov 09, 2018 2:19 pm
Forum: Personal Investments
Topic: need help on picking SEP-IRA funds (fidelity)
Replies: 10
Views: 717

Re: need help on picking SEP-IRA funds (fidelity)

so just go all out index funds? 60% domestic 20% international 20% bonds like that? Umm, yeah. https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy#Use_index_funds_when_possible but honestly what's the point of having these managed funds? :confused They make money for the companie...
by Bones_Jones
Fri Nov 09, 2018 1:52 pm
Forum: Personal Investments
Topic: need help on picking SEP-IRA funds (fidelity)
Replies: 10
Views: 717

Re: need help on picking SEP-IRA funds (fidelity)

so just go all out index funds? 60% domestic 20% international 20% bonds like that? but i don't know how to find them on their website.. but honestly what's the point of having these managed funds? :confused so i'm more of a short term(15-18years)... not long term... does that change anything? in fi...
by Bones_Jones
Fri Nov 09, 2018 4:26 am
Forum: Personal Investments
Topic: need help on picking SEP-IRA funds (fidelity)
Replies: 10
Views: 717

need help on picking SEP-IRA funds (fidelity)

hi guys, I decided on SEP IRA after waging my option. we are going to max out 55k a year for next 15 years. :D we already have a fidelity account, so we are sticking with them. one annoying thing about SEP IRA is that they won't let me auto invest. so i have to put the $ in monthly. :x ok, so i just...
by Bones_Jones
Wed Nov 07, 2018 2:14 am
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

UPDATE ok, so we set up the SEP IRA account with fidelity. we are going to just max out 55k a year. we already have a fidelity account, so we are sticking with them. one annoying thing about SEP IRA is that they won't let me auto invest. so i have to put the $ in monthly. :x so which funds do i pick...
by Bones_Jones
Thu Sep 20, 2018 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

i was reading through whitecoat investors and many sole prop doctors seem to be on a backdoor IRA. so what's the advantage of backdoor IRA?
i did read through it, but i fail to see its advantage over SEP IRA... :confused
by Bones_Jones
Wed Sep 19, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

hi guys, ok after your helpful replies we decided to 1. stay sole-prop 2. open SEP IRA and max contribute (i like the idea of less paper work) 3. don't get into stocks or anything yet, just keep saving money for home down payment one last question - what do i do with an LLC we created? we don't want...
by Bones_Jones
Wed Sep 19, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

oh boy this is great stuff. thx guys!

i really really appreciate kind replies and helpful tips.

i'll study the posts here and will ask more questions!


:sharebeer
by Bones_Jones
Wed Sep 19, 2018 12:22 am
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

Best option is to set up a solo 401k for each of you if both doing separate businesses. If wife is employed with you, she can be on your solo 401k plan. You can contribute the most this way. You can contribute $18500 for each individual and the business can contribute up to another $36500 depending...
by Bones_Jones
Tue Sep 18, 2018 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

Re: self-employed professional - the best way to get things started?

thank you for the input, guys! i'm leaning towards solo 401k and i'll do some more homework. oh by the way, i'm a family physician. i do 100% telemedicine. my wife is a graphic designer. she makes 50k. we can basically work at anywhere, anytime. :happy we did form an LLC (whatever name medical clini...
by Bones_Jones
Tue Sep 18, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed professional - the best way to get things started?
Replies: 27
Views: 2969

self-employed professional - the best way to get things started?

hi guys, total financial noob here! i posted stuff while back. fast forward 2 years later alot of things have changed. cliff notes 1. both wife and I are self-employed. both 38. 2. we make combined 270k from home, filed jointly. 3. no home, no more mortgage payment (we plan to buy a home in 2-3 year...
by Bones_Jones
Fri Jan 19, 2018 1:57 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

ok, so someone has house paid off, no debt, and has everything from 401k, IRA, and enough $ in emergency funds. and he/she wants to invest 10k yearly to grow wealth. what's next then? :confused Again, please create a new post according to the instructions here https://www.bogleheads.org/forum/viewt...
by Bones_Jones
Fri Jan 19, 2018 1:54 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

Think about it this way: You can build your future/retirement/security on shaky sand. Or You can build your future/retirement/security on nice firm rock. If you understand the basics and why this place exists, THEN you can completely ignore all the advice and do whatever you want. If you came here ...
by Bones_Jones
Fri Jan 19, 2018 1:45 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

well just wanted to get into it... want this to be my hobby.. i bought bunch of books. but advises are all over the place. so just dont do it? why not? i see people showing off their brokerage account balances... i mean i doubt they are experts in anything... somebody just showed me how his u.s ste...
by Bones_Jones
Fri Jan 19, 2018 1:39 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

Agree with bloom2708. You aren't ready to make any trades yet. $4.95 may not sound like much, but if you pay two of those commissions on your $5000, that's nearly what Vanguard will charge you for managing that $5k for the year. If you want Vanguard funds, you probably want to open a brokerage acco...
by Bones_Jones
Fri Jan 19, 2018 1:33 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

well just wanted to get into it... want this to be my hobby.. i bought bunch of books. but advises are all over the place. so just dont do it? why not? i see people showing off their brokerage account balances... i mean i doubt they are experts in anything... somebody just showed me how his u.s stee...
by Bones_Jones
Fri Jan 19, 2018 1:21 pm
Forum: Personal Investments
Topic: $5000 to invest in brokerage account - what to invest?
Replies: 17
Views: 1609

Re: $5000 to invest in brokerage account - what to invest?

oh sweet - i just tried those 2 you mentioned and it's minimum is only $3000.

ok, so those are different. learn something new! :sharebeer

but wait -


so don't do those funds? just buy individual stock instead?