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  1. #1
    Join Date
    Sep 2007
    Posts
    6

    Default 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

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Tax For Independent Workers

    I suggest you go to the IRS website's small business section, and start reading.

  3. #3
    Join Date
    Sep 2007
    Posts
    6

    Default 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

  4. #4
    Join Date
    Jul 2007
    Location
    Houston
    Posts
    27

    Default 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.

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Tax For Independent Workers

    It sounds to me like you're an independent contractor. If you're not sure, consult an accountant.

  6. #6
    Join Date
    Sep 2007
    Posts
    6

    Default Re: Tax For Independent Workers

    Yes an independent contractor , then in that case what wud be the tax implications .

  7. #7
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Tax For Independent Workers

    Like I said,
    Quote Quoting aaron
    View Post
    I suggest you go to the IRS website's small business section, and start reading.

  8. #8
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Tax For Independent Workers

    Quote Quoting m2k
    View Post
    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.

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