ok, so im gonna do a bit of contract work for someone. but they want a W-9 from me so they can report their expense legal.

im really clueless here. I have never done any official contracting work that required extra tax info.

what tax responsibilities do i have?

what i need to know first off is how much my tax liability will be. if I net $1000.00 for the job, what tax will i owe?

3/11/2007 10:45:36 PM

they will give you a 1099 next year based on your total payout.

you will have to cover the income tax (state and federal), medicare and social security withholding.

Generally this adds up to about 30% of your gross pay.

If you net $1000, keep at least 300 in the bank for next year's taxes.

3/12/2007 12:46:45 AM

keep some basic records of the work you do and how much you get paid. also if you purchase something to do the work then you can deduct that too. you can deduct mileage if you drive a lot for doing contract work, recently the max deductable rate has been $0.445/mile. you will report this stuff on a 'schedule c' on your annual tax return.

disclaimer: i am not a tax or accounting professional

3/12/2007 7:37:31 PM

but he did stay at a holiday inn express last night

3/12/2007 10:09:54 PM

i did?

all i know is i woke up in a ditch and my underwear was gone.

3/13/2007 12:13:37 AM

yeah you can deduct mad shit on a schedule c if that income is minor
say you had to buy a new computer to do the job and deduct it

3/13/2007 1:05:39 AM