Sunday, May 16, 2010

3 Jobs in 2007: 2 were full-time, 1 was independent contractor. How do I separate for taxes?

From January - June I was an independnent contractor.


From January - March I was an employee for snow removal


From July-December I was an employee for the company I was an IC with





How do I separate these writeoffs? Or do I put it all together?

3 Jobs in 2007: 2 were full-time, 1 was independent contractor. How do I separate for taxes?
The income from the independent contractor job (1099-MISC) goes on either Schedule C or Schedule C-EZ. If the total for the year (not per job) exceeds $400, then it also goes on Schedule SE. The income from the employee jobs (W-2 forms) goes on the wages and salaries line of Form 1040.
Reply:For the two jobs as an employee, you should have gotten a W-2. You add those together and put them on the wages line of your tax return, which will have to be a form 1040, not 1040A or EZ since you have the i.c. income also.





For the work as an independent contractor, you'll file a schedule C or C-EZ showing your income and any associated allowable expenses, and a schedule SE to calculate your self-employment tax . The numbers from the bottom of the two schedules will go on the same form 1040 as your W-2 income.





If you have allowable deductions that aren't related to your i.c. work, those would go on a schedule A.
Reply:You must identify the writeoffs for Jan-June for the IC work and put them on schedule C.





The remaining writeoffs (if any) go on schedule A.





How as the work different in July to December? The IRS tends to look askance when you get a 1099-Misc and a W-2 from the same firm for the same work.


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