Posts by Jeremy Booth21

Brenda Chase3 said:You are required to enter the data from your 2016 W-2 provided by your former employer, but please rest assured that you won't be double-taxed since the taxes and withholdings on that portion have already been settled. That is precisely why the tax form includes a specific section where you can list exactly how much tax and withholding was already paid.

As for your private savings, there is no need to include that.

Thanks for the reply.

I really need to sit down with my accountant to figure this out because if my salary from my old job was X and I paid Y in taxes, then if I just plug X into this return, it becomes the basis for a 40% tax rate (on top of my actual business income), which would end up being way higher than the Y amount calculated at the 12%, 25%, and 40% tiers.
If that's actually how it works, even with the deduction for taxes already paid (Y), I'd still be paying more tax, which makes zero sense to me.
But hey, like I said, I gotta see how this plays out in the real world. Maybe I'm just overthinking things and talking nonsense.

Thanks again.

Sorry if I’m the only one totally lost here, but I really need to ask. I’ve been digging around but I can't find anyone who's dealt with this exact situation before.
Up until January 31, 2016, I was working for a company, but then I got laid off due to restructuring, and on February 1, 2016, I officially started my own small business.
Now, they’re trying to tell me that on my tax forms, I have to report not just my actual business income starting from February 1st, but also the wages I earned from my old job back in December 2015 and January 2016—even though all the taxes, social security, and withholdings were already handled by my previous employer.
Is that actually how it works? Because honestly, it feels like I'm being taxed twice on the exact same money from my old job.

Also, quick second question: what about interest income from my personal savings account (which I've had for decades)? The bank already automatically handles the taxes on that when they pay out the interest, and it has absolutely nothing to do with my business.
Does that also need to be included on the tax filing? It seems totally ridiculous to me because, again, you'd be taxing money that's already been taxed, plus that interest comes from personal funds that aren't part of my business operations.

Thanks!