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  1. #1
    Join Date
    Mar 2009
    Location
    Michigan
    Posts
    6,808

    Default How Much of My Income is Taxable

    First time doing this...

    I made enough to get a 1099-MISC. $875.00 total income.

    Are my taxes based on $875 or just the portion over $600?

    While I would love to put money towards my bills...I'm wondering what part I will owe on, so I can set that aside.

    Thanks

  2. #2
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Taxes.independent Contractor

    Your taxes will be based on the $875 minus any business expenses you incurred to make that money. If the net amount after expenses is under $400, it will be included with your other income and you will only pay the income tax on that money. If it is $400 or more you will also pay a self employment tax as well, which is approximately 13% for 2012.

  3. #3
    Join Date
    Mar 2009
    Location
    Michigan
    Posts
    6,808

    Default Re: Taxes.independent Contractor

    Thank you!

    I assume business expenses means: The table I had to purchase, the clothing to meet the dress standard that I don't wear for anything else...

    Mileage, since I did work events not in my area? Like 60-90 miles each way? And all the record keeping? Just wondering. Thanks again.

    - - - Updated - - -

    Record keeping includes use of camera, scanner, printer, etc.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Taxes.independent Contractor

    The clothing that you had to buy - is it stuff that you CAN'T wear for anything else (such as things with a logo silk-screened or embroidered on it) or stuff that you simply don't wear?

    If you CAN'T wear it elsewhere that's a different thing that if you just DON'T wear it elsewhere.

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