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Old 02-13-2014, 02:48 AM
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First time paying taxes in US. Am I paying all taxes?

Hello.

Even though I am a US citizen, this is the first time I am filing taxes in the US because I have been working abroad since after college. This is my first year that I made income in the US and am not filing with an international tax exclusion(cant remember the correct name.)

I am self employed so I want to make sure I’m not missing some tax that I need to file and pay for. My income is really low this year, so I don’t think its necessary to go to a tax accountant.

So far, I am filing for:
Federal Income tax
Oregon State tax
Self employment tax(this is killing me)
Multnomah county tax(this is the tri metropolitan tax)

Is there something I’m missing? I already almost missed the Multnomah county tax so I hope there isn’t anything else I should be paying.

Thank you in advance for your replies.



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Old 02-13-2014, 03:48 AM
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Join Date: Oct 2010
Posts: 5,230
Quote:
Originally Posted by Adol View Post

#1;So far, I am filing for:
Federal Income tax
Oregon State tax
Self employment tax(this is killing me)
Multnomah county tax(this is the tri metropolitan tax)

#2;Is there something I’m missing? I already almost missed the Multnomah county tax so I hope there isn’t anything else I should be paying.

Thank you in advance for your replies.

#1;
Federal Income tax==please read below.
Oregon State tax===read below please for quarterly estimated taxes in Oreogn
Self employment tax(this is killing me)=read below please
Multnomah county tax(this is the tri metropolitan tax)==========it is excise tax that you can never deduct on yur return

#2;Briefly, as a self employer, you need to file your return aslongas the amoun ton Sch C line 29, 31 is $400 or exceeds $400 also aslongas the amount reported on Sch SE line 2, 3 is also $400 or exceeds 4400, then you must pay SECA Tax, The SECA tax is how an independent contractor pays Social Security and Medicare payroll taxes. In the case of employees, the employer and employee split the cost of these payroll taxes, each paying 7.65% of eligible wages. An independent contractor, by contrast, is both the employer and the employee, so a self-employed person pays both halves, or 15.3% total. However, you can deduct 50% of your SECA tax mthat you pay to IRS on 1040 line 27.ALSO, aslongas you are filing as a sole proprietor/ a self-employed individual, you generally have to make quarterly estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.However, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year; you were a U.S. citizen or resident for the whole year;your prior tax year covered a 12 month period.So unless you filed return to IRS/Oregon, you donot need to pay estimated taxes to IRS but you still need to pay quarterly estimated taxes to DOR of Oregon on your net earnings that you earn in Oregon. So UNLESS the amoun t reported on SCh C line 29, 31 is $400 or higher than $400, you do not neeed to file your return as a self employer.
For Oregon estimated tax; Personal Income Tax Overview Estimated tax

You can follow the instructions on Sch SE for your SECA tax here; 2013 Instructions for Schedule SE (Form 1040) (2013)



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