Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-07-2011, 08:59 PM
Junior Member
 
Join Date: Apr 2011
Posts: 1
New to being an Independent Contractor

Hi everyone.
I do home health care for an elderly man. I am paid by his brother, who takes out no taxes. I can't afford to go have my taxes done(on a limited budget). I am also paying back taxes because I had to use my IRAs to get by after my husband died in 2007.
As an independent contractor who already owes the govt. money, what forms do I need to file?

Thanks..
Drowningintaxes



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-08-2011, 12:17 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“As an independent contractor who already owes the govt. money, what forms do I need to file”----> As an IC, self employer or a sole proprietor, aslong as you have $400 or more of business income over and above your expenses net earnings, I mean, then you need to file a Sch C or a Sch C-EZ. Also if the amount on Sch SE line 4 is $400 or exceeds 4400, then you need to pay SE Tax, self-employment tax which is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves, like yourself. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). Also, you need to pay quarterly estimated taxes .If you are filing as a sole proprietor and/or a self-employed individual, you generally have to make 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.
Please for more info., visit the IRS Websites here; Estimated Taxes
Self-Employment Tax (Social Security and Medicare Taxes)
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
http://www.irs.gov/pub/irs-pdf/f1040sce.pdf



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
independent contractor and employee @ the same time StormRoyale Estimated Taxes 4 04-08-2011 10:04 PM
Independent Contractor and Business Expenses Onflight1978 Sole-Proprietorship 1 12-13-2010 11:56 PM
New Independent Contractor g8rcb Estimated Taxes 0 01-31-2010 05:07 PM
What are the factors that determine someone is an independent contractor? Allard Miscellaneous 0 07-07-2007 11:35 AM
What are the factors determine whether you are an independent contractor? Wayne Miscellaneous 0 06-07-2007 10:49 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.