How do I file if I started 2006 as an independent contractor, but switched jobs (1099-MISC to W2)?

Question

I worked the first half of 2006 as an independent contractor, but switched jobs in September and have a W2. I know that i'm supposed to report the self-employed income on 1040, schedule C, but am also supposed to fill out 1040 for my W2 job.

How do I combine the two for all of 2006? Is there anything special I need to do? Any other forms?

Thanks!

Answer 1

Yes, put your W-2 income on the 1040. Your 1099 income will go on the schedule C or C-EZ, then whatever's left after you subtract any deductible expenses will transfer to the 1040 also.

You'll also fill out a schedule SE to calculate self-employment tax, and that number will also go over to the 1040.

Answer 2

You need to include both on the same form. There is a section for Wage Employment(W-2) and your income from the Schedule C.

You will need to use Form 1040, you won't be able to use 1040A or 1040EZ. For Reference the Wages are entered on Line 7 and the Business Income(Schedule C) is entered on Line 12 of the 1040.

You should only need Form 1040, Schedule C, and if you are trying to do the Home Office Deduction there is Form 8829. But in your case it might be worth the few bucks and use either an On-Line Tax Program such as TurboTax, it guides you through all of these.

Answer 3

the deadline for filing individual taxes, be it W-2's or 1099's is the same, 4/15/ with one extension to 10/15 independent contractors should be paying their taxes quarterly on 1040ES, April 15, June 15, Sept. 15, and Jan 16, 2011 for 2010 taxes and yes, as an employee the employer withholds taxes including income and independent contractor is exactly what the name implies, independent I would assume you are probably not in a proper employment status and if you would like to have that determined for you request an SS8 from www.irs.gov, complete it, submit it to IRS and let them tell you if you are independent or not

Answer 4

Just fill out the W-2 form on your first day of your new job.