Tax For Independent Workers
Hi,
I am from MN and work for a staffing agency based out of Tucson. I work on their staffing needs in MN.
My work is only commision based and my employer does not provide me a W2.
I bear my own expenses like Computer, Internet, Telephone and House Rent.
In my tax filings , would these be exempted from my tax or no ?
Thanks in advance for any information.
m2k
Re: Tax For Independent Workers
I suggest you go to the IRS website's small business section, and start reading.
Re: Tax For Independent Workers
Thanks for the reply Aaron but I am technically employed by a company.
I am not owning a business.
M2k
Re: Tax For Independent Workers
If you are getting a 1099 and not a W-2 - you are "owning a business". You can deduct expenses against that income but only a portion of home-office expenses, and then there are certain limits.
Re: Tax For Independent Workers
It sounds to me like you're an independent contractor. If you're not sure, consult an accountant.
Re: Tax For Independent Workers
Yes an independent contractor , then in that case what wud be the tax implications .
Re: Tax For Independent Workers
Like I said,
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aaron
Re: Tax For Independent Workers
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m2k
Yes an independent contractor , then in that case what wud be the tax implications .
The implication is that you will have to pay self employment tax of 15.4% in addtion to regular income taxes on the amount of your net profit.
You are technically in business for yourself as an independent contractor.
I strongly recommend that you have your taxes professionally done this year. It will help you better understand your situation.