More of Your Taxes Explained (with Hank Green)!
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- Опубліковано 3 сер 2024
- In which Hank Green and Mike Martin teach you about how to file and pay your freelancer/self-employment taxes in the second part of our two-part tax series. With Tax Day (April 15th) approaching, here is your (mostly) complete guide to federal income taxes, self-employment taxes, tax returns, IRS forms, IRS refunds, Schedule Cs, 1040s, and other things you need to know in order to file your tax return. (TL;DR: don't worry, you got this.)
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"How to Adult" is a "life skills" edutainment channel executive produced by Hank Green and John Green. Subscribe for new videos every week!
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VIDEO LINKS:
Quickbooks:
www.amazon.com/gp/product/B00E...
TurboTax: www.amazon.com/gp/product/B00F...
Full list of the IRS self-employment tax deductions: www.irs.gov/publications/p535/...
Schedule C: www.irs.gov/pub/irs-pdf/f1040s...
1099 Form(s): search.irs.gov/search?as_sites...
National Association of Enrolled Agents (one of the places where you can find people to help advise you on self-employment taxes): www.naea.org/
Co-created by:
Emma Mills
/ elmify
Directed, Edited, Hosted and Co-written by:
T. Michael (Mike) Martin
/ tmikemartin
(Mike is also a Young Adult novelist. His book, THE END GAMES, is available at all online booksellers, including Amazon: www.amazon.com/gp/product/0062...)
Executive Produced by:
Hank and John Green
/ vlogbrothers
Co-writer and Tax Adviser:
Gary A. Hensley, MBA, EA (You can check out Gary's blog at taxsolutionsforwriters.com/)
INFO ON TAX EXTENSIONS (FORM 4868):
www.irs.gov/uac/Newsroom/Can't...
This video makes having a company sound scary. I own 4 companies, it's not scary. Get an accountant, it's like $3-400. Upload your receipts to a shared dropbox with the accountant and the accountant will tell you what 4 checks to write each year. It's that simple.
+optikalefx WOW THANK YOU!
WOW really? you can just send them pictures? I assume using the document scanner on drop box is the way to go? what about profit though?
"Roads, schools, and defense..." Mostly defense though
Does anyone else simply adore the opening jingle for this show?
Where do i declare any Fishing boat proceeds i may have for the year?
This channel is f****** awesome! Even if I still can't understand half of it :( Guess I will just have to go over all this again in my spare time. You guys are great, thank you for making a channel like this for people like me :)
Thanks for this! I am not yet self-employed, but I would like to start doing some freelance work, so this is really good to know! Especially the part about self-employment tax vs. income tax. I had exactly zero knowledge about that before watching.
Keep up the great work!
Uncle Ham
Can't believe I didn't think of that.... :]
- Mike
What I learned from this episode: go find someone who actually knows what they are doing, cause this stuff is confusing!
The Wheezy reference was perfectly timed, as my coffee cup had actually just run dry.
Having already known the Nightmare before Easter that a few self-employed friends and family go through helped me understand this...which I intend to be a part of at some point. Scaling up from expensive hobby to small business that might come out of the red and see black eventually is tricky if not a bit scary.
I’m watching this, and I am trying very hard to learn; but every time I see a tax form my mind reacts negatively and “God I hate taxes...” rolls through my mind like thunder rolls across the sky after lightning.
Sam and Hank can be amalgamated (easily) in two ways: Shank, and Ham.
UNCLE HAM SHANK!
bruhhh slow down.... My head was going like 500MPH
Great Video!!!
Can we have "how to buy a car", "how to take care of your car", and "how to get your car fixed"
Also, getting tax help can be written off as a tax deduction, so there's that :)
Thanks for this show! It is much needed information.
Could you talk sometime about all the legal stuff that happens when you get married? Like what legal benefits there are to getting married and what property becomes joint property. And also, what happens (or what do you have to decide happens) when you get divorced?
I just want to know how they did that typewriter thing...
It's actually a word processor, and you can type 25 words before it types it out.
Who the eff is Hank?
Hank Green of the Vlogbrothers, who also produces 'How to Adult'.
Hank is an airline that operates scheduled international services between countries in the Western hemisphere.
Hank is an idea.
Hank is a governmental body that regulates the collection of taxes for the United States of America.
Hank is the only piggie that was released into the Third Life by a human, Ender.
I never thought Hank Green dressed as Uncle Sam, Benedict Cumberbatch, and taxes would all be in the same video.
yeah I made a good decision dropping out. all of this info. 10 minutes. Free. Useful. Relevant. imagine paying to learn english
This video rather makes me want to cry. I'm so glad I'm not self employed.
So...quick question: Say I sold afghans on etsy, and one particular afghan was a queen size, yarn-hog of a blanket which sold for more than $600. Does the person who bought it have to send me a 1099-MISC? Do I need to obtain a 1099-MISC from them? If yes, what happens if I don't get the form from them?
No. 1099s are only for services, not products. So if you're selling afghan products, no one will issue you a 1099.
Also, only businesses have to issue 1099s, not people. And it's on that business to issue it, the recipient has no obligation to request or get the form from them. You're separately obligated to just know how much income you got and report it.
Definitely invest in a CPA. It'll help more than it seems to hurt at the moment. Trust me. I'm an adult, supposedly.
Uncle Shank is AWESOME
Bit how do I get fishing boat proceeds?
As a freelancer thank so much!
No comment on what the famous fishing boat proceeds are?
Can you do a video about how to write a resume for a first job please?
can you guys discuss the best way of making a budget during the next finance month?
I have so much more respect for my dad for doing this for 20+ years.
My mother is a CPA, and it's very annoying to her when someone's records are terribly or not organized. Such as just shoving them in a box in no particular order. Not keeping records or keeping them in a way that's likely going to get some lost will probably put you at greater risk of an audit.
So if you want to keep your accountant and "Uncle Shank(lol)" happy definitely organize well.
To clarify, the way you organize records will not impact the _risk_ of an audit, but will increase the likelihood of negative repercussions during an audit if you were to get audited. Just wanted to highlight that these are two separate things: the probabilistic risk of an audit vs the painfulness of enduring one.
tax reporting for the self employed in the states is seriously more complicated than in UK.
You pay the whole self employment tax BUT you also take a deduction for the employer half. Employer taxes are always deductible to the person/business who pays them.
-Your friendly neighborhood CPA
HANK!
Can anyone tell me what this amazing theme music is?
Uncle Sam + Hank Green
Uncle Shank
I ship it
Uncle Shank
Hahaha
America is confusing.
If Congressmen were required to do their own taxes, we'd have a simplified tax system within two years.
Good point, perspective is everything. I know doing your taxes is never easy, but where I'm from (England), its sure as hell simplified .
Hey, I'm going to uni at the end of this year and I need help on socialising with roommates, how do I set boundaries with them without coming across as controlling, also how do I deal with them if we don't get along help me adult please ! :)
Great video! Great series! Great channel! I am very glad that someone has come up with this, and pretty much all of your advice is good. (I got the link from reddit.com/r/internetparents , posted by user ohrightthatswhy.)
A minor nitpick about this specific video: You mention "a limited-liability company that did not incorporate" (at 7m35s). There is no such thing as an unincorporated limited-liability company. (There is a "partnership", but even partnerships need to file separate tax returns to explain to the IRS who got what share of the profits and losses from the business.) An LLC is a separate entity (a separate person with separate liability), treated like a corporation for tax purposes. The entire purpose of a Limited Liability Company (except in California) is to limit liability for the LLC's members, by shifting it to the company itself.
The downside to running a sole proprietorship or partnership is liability: if your business suffers a liability-inducing event, you are personally (or jointly) liable for making up the shortfall. If an LLC or corporation suffers a liability-inducing event, that entity is liable for making up that shortfall. (California has a law which says that there is no liability shield like that, for either LLCs or corporations -- it's all up to each individual state.)
So, here's a suggestion/request for a future video: How to Legal Action. I realize that this is something that everyone likes to shy away from, but the fundamental idea is "file papers with court, other person files papers with court, all sorts of procedural mumbo-jumbo that you really want an attorney for, maybe you agree to settle the case before it goes to a hearing/trial, or you go before a judge/jury and get told what you have to do, and maybe appeal what the judge/jury says". Or maybe you get a subpoena to be a witness at a trial.
Another one might be, "How to Jury Duty". It's one of the most fundamental rights and obligations we have: if we want to have the right to a jury trial, we must have the responsibility to serve on juries we're called for. We need more people who understand what's going on with the non-violent dispute resolution mechanisms we pay our taxes to support, and why people shouldn't try to skate out of their obligations when they're called to serve to keep our civil society civil.
Thanks for your videos, and keep it up! :)
Actually, you can be a sole proprietor and have LLC status. You are considered a "disregarded entity" by the IRS and you can use Schedule C as part of your personal Form 1040. A single-member LLC by default is a Schedule C disregarded entity unless it ELECTS to be treated as a corporation. LLCs with more than one member MUST file either as a partnership or a corporation. A Schedule C disregarded entity has the ease of filing only a Schedule C and does NOT LOSE any of the limited legal liability offered by the LLC. This should clarify the issue for you Kyle.
Hehe, don't forget to be organized
As a UK resident I respect you crazy americans going thought all this paperwork year by year and not rebelling haha
Schedule C is quarterly. But where can you specify that you made them in past quarters when doing your april 15th yearly tax satement?
Schedule C is only filed once a year on your tax return. The estimated payments are just paid in quarterly. You claim those payments on your return, on the line underneath withholding from your W2 and 1099s
what about filing from abroad? i'm an American citizen but i'm living and employed abroad and don't intend to return for a while.
Uncle Shank. The perfect name for the tax man.
-J
It is a pretty nice costume :)
Are you required on paying for social security? Is that for retirement? And what if I do not wish to use retirement money?
Everyone employed is required to pay in towards social security. But it's also a deduction. You pay in the full amount in Social Security and Medicare tax on your turn where you calc how much you owe, but you also get a deduction for 1/2 of the taxes (the employer portion paid in). If you're an employee, the company takes the deduction of payroll taxes.
UNCLE HAM!
link in the doobly doo
I ship Uncle Hank and J. Law!!!!
Isn't there a more efficient way for people to pay their taxes ? I'm not american and I don't even pay taxes yet but this sounds so complicated I feel like many people will pay the wrong amount
As a future hopeful writer, this just kind of scares me more. Noooo.
Did he just say _pacific_??
mostly defense 600 billion worth of "defense"
In theory, would the 600 dollar rule apply to Patreon and subbable?
#Headache #Neverland #ShotMyself #What
WAIT! But who the eff IS Hank?!
Hey I'm is junior year and I go to an all boys school in Australia. All my friends seem to have friends that are girls. I no none however and I want to know how to meet girls. If you would help me in any way that would be great. Thank you.
So, I don't need to report receiving $400 for my summer internship?
Yes you do, especially if you were sent a 1099-MISC as this means the IRS already has a copy of this income and will be expecting it on your return.
Alright. Thanks for letting me know. :)
Grant Volker It might be more trouble than it's worth, but many employers try to get out of paying their half of SS and Medicare by classifying people as independent contractors when they are really employees. If you want to look into the differences here's the link to the IRS's page on the matter www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
They state on that page what to do if you feel you've been improperly classified, but for a job where you only made $400 it probably isn't worth the hassle.
Lynda Wells Actually, if you make precisely four hundred dollars or less, you don't need to report it: www.irs.gov/Individuals/Do-You-Need-to-File-a-Federal-Income-Tax-Return%3F-
Right, I was assuming that he was asking about reporting the $400 in general not on whether or not he was required to file a return. If he is required to file a return then the $400 needs to go on it. Obviously if he's not required to file then there's no return to put it on.
why do we have to pay taxes
+Air After (popgame24) because we haven't fully realized that a government is still very similar to a monarchy, which was designed to own and impose force on whoever it could... and the whole point of that is to profit at others' expense... hence taxes.
I feel for all international people you could just say
Hire a pro, we have no idea, sorry
Who the f is Hank? :)
Prepare to have your mind blown... and google it.
...and youtube it.
I know. I just think it's funny that they included the here. Though they forgot to mention fishingboat proceeds.
You lied to me; you also watch Emma Approved!
I hoped the smiley face would make it clear that I was recognizing the joke.
Don't wipe your nose on your 1099-MISC (gross receipts)
Who the eff is Hank?
And why wasn't there anything about my fishing boat proceeds?
How do I go about those?
who the eff isn't hank?
and
who the eff is john?
Ooookay--obviously this will be heavily American. I should probably stop watching (/pause/). Are there any Canadian versions of this...? :X
Canadian: turbotax.intuit.ca/tax-software/ca_turbotax_2014-03_home-premier-b.jsp?s_tnt=53529:8:0 Go to TurboTax (or any other tax software) $40=8 licenses, so split with your friends/family, and then go through the forms. It has handy tips, prepares everything for you AND Netfiles for you if you have already submitted to the CRA. If not, you'll have to print and send in. Easy and you can see helpful tips and it does the math for you.
I was just thinking the same. It has some merit as an overview.
Note on 1099-MISC, I do not feel that this was well explained, when he says when you pay anyone else you need to file a 1099-MISC this does NOT include payments to corporations. So if you pay USPS over $600 to ship packages for you, no 1099-MISC. If you pay a contractor who is working under an LLC, no 1099-MISC. I you pay some guy you found on the street to deliver a package (and don't set specific work hours for him or do anything else which would make him an employee) then you file a 1099-MISC. When in doubt go to IRS.gov and read the instructions that go with the form you're trying to fill out. Or call and ask. Most of the people they hire to man the phones out of season are really nice, during tax season is another story.
Also, if you plan on hiring a CPA to do your taxes, ask them if they hire preparers or do the returns themselves. I used to work for a major tax prep company and local CPAs would often hire people we fired to prepare taxes for them. They pay these people very poorly and would just sign the returns without looking them over. I'm sure not all CPAs do this, but be aware that some do.
1099s do have to go to most LLCs. Only if the LLC has elected to be taxed as an S Corp would you not have to. If they're a SMLLC or a partnership, a 1099 is required for services over $600/yr.
When you say "major tax prep" place, that sounds to me like an h&r block or similar. They are not CPAs generally. However, most CPA firms require their new hires to be on path to getting their license within two years in order to continue their employment. CPAs have very strict licensing requirements. I've been licensed as a CPA in three states over a decade and feel confident saying the excessively vast majority of CPAs are not so unethical as to sign off on something they've not reviewed.
so...question: let's say that i'm a youtuber (more specifically, a semi-casual semi-"i want to do this forever" vlogger) and i also sell my artwork on etsy.com. am i employed through google/youtube/adsense with the side of self-employment or am i only self-employed?
Only self employed. UA-cam/Google/etc do not set your work schedule, tell you what to do, or do anything besides pay you for your services.
Hank green WTF! sci show?
I love the idea of millions of people across the world being bombed out of existence, I know a majority of my taxes go toward this which is why i love paying them. I am a 1000% proud patriot that would tip the US Govt for all that it does in the world with every penny i so gladly contribute to it.
FutureLaugh that's how i feel as well.
Note to self: never become self-employed.
Who the eff is Hank?