If you are self-employed as a secretary, & drive to and fro the same job for 40 /hrs/week, tax deductible?

Question

I know it sounds weird, but I am self employed as a secretary for a real estate company. I work 5 days a week, for forty hours. When I was hired, she told me that I will be considered an independent contractor and will have to take out my own taxes. I hate having to do it, but I don't have another job to fall back on.

At any rate, I know I have to take out 15% percent of my income for the extra burden of self employment tax. My husband is not working. We don't have any children. However, I was wondering if I would be able to claim the mileage of driving to and from work. I don't drive anywhere once at work though. I was previously told that claiming gas mileage is only possible if you are self employed, and is one of the perks of it.
I hope this is the case, because it seems like such a tremendous amount of tax to shell out each year.
I hope someone can clue me in, because I don't want to be side swiiped at the end of the year. Quarterly tax payments are not possible.

I say that it is not possible do to quarterly tax payments because my boss told me she only issues the 10-99s at the end of the year. At this point, I don't have enough taxes saved to equate to the 15% that I must pay.

Lastly- My salary is $ 8 an hour.

Answer 1

You are an employee, not an independent contractor. File Form SS-8 with the IRS to force a determination on this issue. Your "employer" is taking extreme advantage of you in this situation.

You need to make those quarterly estimated payments to the IRS as long as you are receiving 1099 income. You risk penalties and interest for underpayment of your taxes if you don't. If you don't make them, you won't be "sideswiped", it will be more like a head-on collission at 75 MPH.

Your mileage constitutes commuting and is not deductible.

Answer 2

This is my answer to the other version of your question. Your employer has mis-categorized you. You ARE an employee. You ARE NOT self-employed.

15% is about right for self-employment taxes, which are the equivalent of both employer and employee portions of Social Security and Medicare taxes. Federal income tax is in addition to that amount.

The most important issue is "Are you truly self employed?" There are specific rules that determine who is an employee and who is not. Based on working 40 hours a week for a set hourly rate, I am certain you should be classified as an employee. In that case, your employer is required to withhold taxes, pay the employer half of Social Security and Medicare taxes, and issue a W-2, not an 1099.

Commuting to and from work is never deductible.

Edit: I just did the math and the other answers are correct about regular income tax. If you have no other income, you should have not regular income tax liability.

Answer 3

No, the drive to and fro work is not deductible. It is only deductable if you have 2 or more jobs that you drive in between. Also, your employer is screwing you over with the independent contractor thing. He only has to pay you your paycheck. He is getting a HUGE deal out of you because employers basically pay 15.3% in taxes (They match the taxes that come out of your paycheck plus unemployment taxes). Get on the books as an employee for your own sake. When you get back your refund in 2008, take a vacation for all of the trouble your employer has given you.

Answer 4

Now for some properly suited techniques: £200 a week is approx £10,4 hundred in line with annum your individual allowance difficulty is complicated as you have that taken into consideration by your PAYE device. enable us to assume which you dissipate all your individual allowances. So, £10,4 hundred at 20% is a optimal of £2,080 tax bill. then you definately've NI you will pay (back, forget your employed paintings, you will pay NI one after the different for that) a flat fee of £2.30 a week (£119.60pa) and over £5435, 8% of your earnings, which ability on a determine of £10,4 hundred you will pay one greater £397.20 bringing your NI contribution to a entire of £516.80pa. So, your tax bill could be (greater or less) as follows in your self employed earnings: earnings £10,4 hundred earnings tax at 20% (No own Allowance) £2080 NI Flat weekly fee £119.60 NI 8% over £5435 is a entire of £397.20 internet earnings £7803.20 back, that includes no own allowances and no enterprise expenses or working expenses. you would be paying type a million (PAYE) 2 (Self employed) and four (Self employed over £5435) national coverage, yet you heavily isn't paying the quite a few gross figures that some persons are speaking approximately above. desire this facilitates, and keep in mind they're merely tough figures. Even claiming £20 a week petrol could help your case and that i totally propose getting an accountant to handle the discrepancies between your self employed/employed positions. additionally, to your earnings, you will merely be paying £50 - £a hundred for an accountant in line with year, yet they are going to save you that quantity in tax on my own.

Answer 5

you are an EMPLOYEE, not at independent contractor. and you have more than 15% self employment tax to worry about...how about federal withholding? state withholding? you've got bigger problems than worrying about deducting mileage. get on the books as an EMPLOYEE !!!!!