Question about US taxes and clients
1. When you outsource your work to an individual can you claim that as a tax right off if you don't have an W9?
2. How do you claim taxes on work you completed for an individual if you don't give them a W9?
3. If I apply for an EIN is that only for my business? When I file at the end of the year are the wages earned under the business name or filed with my ordinary income tax?
4. I understand that social security, medicaid and what not is payed at about 20% of the taxable income. Does that mean that it is 20% for that, an ADDITIONAL percentage for federal and then 6-7% for state tax as well? So at the end of the year is about 40% being taxed, or just the 20%?
Thanks for your help. I understand that any advice given is strictly advice that depends on the state and so on and so forth. Just looking for a general idea on how much I can actually spend and how much I should hold on to. I don't want to have to pay in at the end of the year and be surprised.
I look forward to hearing everyone's advice.
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