I am an independent contractor. What is considered tax deductible for a 1099 employee???

Question

I juts started with BLC and They "contract" Their agents. As I said above what am I able to consider as "Tax Deductible"?

Answer 1

Internal Revenue Code Section 162 states that you can deduct any ordinary and necessary expenses incurred in the production of income.

Answer 2

In IRS terms you are self employed. As such you pay tax on whatever you earn, and deduct whatever it costs to earn it. This can include such things as mileage, office equipment, maintenence of a home office (this is tricky-if in doubt don't do it). telephone and so on. Your best bet is to go to irs.gov, library or where ever there are forms and take a good look at Schedule C. Self-employment. If this is your first year and you were unaware of your status, you might not be able to deduct much without receipts. For next year I suggest you keep receipts, driving logs, credit card statements, anything that will prove how much it cost you to earn your taxable income.

Answer 3

The rule of thumb is that anything related to your going and doing work that you pay for. This would include the depreciation on your car that you use to drive to and from home to get to work. The oil, gas, and maintenance on the car for the portion that you use it for work. Any portion of the utilties at home, your computer, your computer supplies if you use it at home. Clothing is a possibility too. Check schedule C for other possibilities.

Read Publication 535, 1779 and 463 for further information

Pub. 463, Travel, entertainment, gift and Car expenses
Pub. 535, Business expenses
Pub. 1779, Employee Independent Contractor Brochure

Good luck. Contact your local CPA for any further advice.

Answer 4

You file one tax return. The W-2 income goes on line 7 of the 1040, the 1099-Misc income goes on schedule C and schedule SE. On the SE form you will owe $129 in SE tax. If your income is high enough to be taxed, the calculation will cover all income. If your W-2 withholding is enough to cover the entire tax bill, fine (there's nothing to "transfer"), if not, you owe. If you owe, you write a check.

Answer 5

Basically, any expenses that you have that enable you to make that money.

You'd be wise to talk to a CPA (NOT H&R Block) about this - they can give you some tips on what records to keep and what you can deduct. If you don't need it for this year's taxes, wait until after April 15 when they won't be quite so busy.

Answer 6

www.irs.gov

That should give you all the information and publications you need to answer your question.

You can also take your taxes to an tax accountant and they can tell you what's deductible or not.