hi
I have a part time job that lists me as an independent contractor. However, I'm still a dependent under my parents. They have already filed their taxes. I still need to do mine but have no clue where to start. Does anyone have any tips?? Thanks!
2007-02-26 03:26:56 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If you are an independent contractor you will file the full Form 1040 with Schedule C and Schedule SE as attachments.
The fact that you are an independent contractor in of itself will not affect your status on your parents' tax return.
Please note that as a dependent you will need to fill in the Standard Deduction Worksheet for Dependents and you will have $0 on the personal exemption line.
2007-02-26 03:35:59 · answer #1 · answered by jks_mi 3 · 2⤊ 1⤋
Your tax return is not that complicated as it may sound. An independent contractor means that your self employed and which indicates that you will file a form Schedule C (self employed)
and are going to pay self employment taxes on the money you earned because there were no social security nor medical tiers taken out on the money you earned so come tax time all you income is going to be taxed on. There is one way you could get out of this. Gather all your expenses (travel miles, tools, meals, clothing, boots, etc.) and deduct as many as you can to lower your income the lowest you could have it that way your tax liability won't be as high. GOOOD LUCK. And if you are over 24 years old ask for the EARNED INCOME CREDIT.
2007-02-26 07:13:11 · answer #2 · answered by friendlydidly 2 · 0⤊ 0⤋
I think the most glaring issue here is that they treated you as an independent contractor in the first place. As an independent contractor, you are essentially in business for yourself. When you took this job, did you consider yourself to be a separate business? If not, you can challenge the classification through the IRS and/or your state's unemployment agency.
The link to the IRS form is as follows:
http://www.irs.gov/pub/irs-pdf/fss8.pdf
On the other hand, if you are an independent contractor, the other answers will help you more.
2007-02-28 05:54:17 · answer #3 · answered by Greg 1 · 0⤊ 0⤋
Unfortunately, you are at least subject to Self-Employment Tax (Social Security) on the earnings. Did you earn in excess of $ 600.00? If yes, your employer was required to issue you a 1099? Did you get it? If not, request from him a duplicate.
Go to a tax prep firm to do your taxes.
Its far too complicated for an average person to understand that you are not entiltled to a personal exemption for yourself and a reduced standard deduction because you are a dependent of another.
If you earned less than $ 600.00, file a return. The social security tax is minor.
2007-02-27 05:28:09 · answer #4 · answered by bold4bs 4 · 0⤊ 0⤋
If you made at least $400, then you have to file a return. If you made less than that, you aren't required to.
To file, you'll show the income and any associated expenses on a schedule C or C-EZ. You'll need a schedule SE to calculate self employment tax, then a form 1040 to pull everything together and calculate any income tax owed.
You can download the forms and instructions at irs.gov
2007-02-26 12:41:44 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Jks answer is very good. However, I would add that for Schedule C purposes, you can deduct your transportation expenses such as miles driven, home office, internet, and as many expenses you considered you incurred in order to work with that company as an independent contractor.
2007-02-26 07:00:39 · answer #6 · answered by publiof 1 · 0⤊ 1⤋
hirea accountant for your first time filing to learn how....Lets
2007-03-01 06:15:00 · answer #7 · answered by letsget_dangerous 4 · 0⤊ 0⤋