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Old 09-26-2017, 03:11 PM
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Join Date: Sep 2017
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Exclamation [Question] Independent contractor working for the first time in US

Hey guys,

I am new to the Country and I have not filed taxes before. I am a self-employed independent contractor and I need your help in the below questions. Thanks in advance.

Background about me:
  • I got my US green card in June 2015 and as soon as I received my green card, I left the US.
  • Prior to 2015, I have I have not lived in the US.
  • For the remaining calendar year in 2015, I was not a resident in the US & I didn?t have to file my taxes
  • For the calendar year 2016, I moved back to the US (New York) in June 2016. I didn?t file my taxes for 2016, as I was unemployed for the entire year.
  • I got a job in July 2017 as a self-employed independent contractor (in California).

Questions:
  1. Question 1 - I understand that I have to pay advance taxes per quarter? So, considering that I started working in July, I need to pay in September or October?
  2. Question 2 - Am I exempt from paying advance taxes now/in 2017, because I didn?t have to pay tax in 2016 (as I was unemployed)?
  3. Question 3 - As I am paid ?hourly? and assuming that I made $10,000 from July to September end. How do I estimate my taxes (considering that I reside in California)? Can I take approx of 30% of $10,000 as advance taxes and pay that quarterly?
  4. Question 4 ? I am planning to open a SEP-IRA or Solo 401-K account soon. Do I need to deduct my contribution for SEP-IRA or Solo 401-K while making advance taxes, or am I not allowed to do that now and wait for the refund when I file my 2017 taxes?
  5. Question 5 ? In line with question 4, I understand that being a self-employed independent contractor, I am allowed to take some deductions like car miles, food, rent etc. Do I deduct this while making advance taxes, or am I not allowed to do that now and wait for the refund when I file my 2017 taxes?
  6. Question 6 ? Can I pay advance taxes monthly instead of quarterly going forward?

Thank a ton!!!



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