I have a "real" job and make a yearly salary…which I receive a W-2 for. BUT, I am also hired as an independent contractor from the same company to perform services not related to my job. I’ve been performing these services for other companies as well, but just so happens this service is above and beyond (separate) from my regular "job".

I understand I can itemize my deductions for the 1099-MISC portion of my taxes. BUT, does that mean that the deductions also have to be put toward the W-2, or do standard deductions still apply to the W-2 portion? I have many deductions this year due to many business related expenses to grow the independant contractor side of being "self employed"….but dont know if thats going to make up for the amount of income on the W-2 as well. I am planning on using TurboTax and have hears that is great software that answers many questions, but was just curious.

Gross income is ,000, but I have a ton of deductions from employee/business expenses (like ,000!) making the adjusted income on my taxes around ,000. I have read somewhere that you can deduct moving expenses (relocated for job), and another place that you can deduct charitable donations too (which we have a lot of, also) Can I deduct these expenses and apply them to make a lower AGI on the FAFSA?

Also does anyone know anything about the ‘displaced worker’ on the form? I think I qualify for that as I was laid off from my position and my spouse does not work outside the home.

Any info from anyone with experience on this? THANKS

Here is my idea, i want to set up a tax shelter to avoid paying income taxes to the IRS. What I would like to do is incorporate a LLC on piece of property and have the property be a agricultural business that losses money everyyear. The LLC lose money then it will off set my income from my regular job and deductions so I will pay a minium in taxes to the IRS. Wont this work?

I keep reading these comments here that claim that Obama will raise taxes on corporations, which will cause companies to shut down, and people to get laid off etc..

So here is a little information from someone who is quasi-literate in such affairs. First of all Obama is not talking about raising corporate taxes, which are very different from income tax. Obama wants to raise income tax (not corporate tax or capital gains tax) on families that make more than 250 thousand dollars a year. So your boss, who probably makes more than that, would want to get paid a little more so he can offset the higher tax that he would have to pay. The increase will come from the PRE-TAX profit of the company that you are working for. More a company pays in salaries the less it pays in tax as the salary, being an expense, is tax deductable. So in other words that tax that would otherwise be paid by the company is now paid by the individual (your boss). So why the whole drama? The answer is actually simple. Corporations have found a lot of loop holes in tax laws and they never pay the taxes that they are supposed to pay. The individuals on the other hand have to pay straight forward taxes based on W2s which some deductions.

So raising your boss’s tax rate is not going to effect your job or the health of the company you work for. Just the tax system will become better and more stream-lined.

I have tried to explain this as simply as possible. I know some of you are going to ask for sources, but you are no websites that will tell it to you in one paragraph. It is common sense if you want to understand it.

My husband has been with the same employer for 15 years. They started with over 50 employees and today they are down to just the owner and my husband. My husband has been managing the business and working and getting a set salary. The owner does not want to shut down the business but the overhead is getting high (the rent was raised 5 times higher at Jan 2009 which really hurt). The owner does not want to loose my husband and has offered to give him work and 1099 him, This would mean eliminating insurance, WC, and the high rent. He will lease my husband a company truck (for a month) and refer the work to my husband and pay him has an independent contractor. My husband’s employer gave him extra money to get a business licences. His job currently does not provide any sort of life/health/retirement benefits just a salary. I carry the health coverage and we have a retirement set up privately.

Besides the tax (increased SS and Medicare deductions) is there anything else that is bad about being an independent contractor compared to the previous salary position he had.

Local jobs are hard to come by and we have a disabled child and hate to move. The only other option is a job that is salaried which would mean my husband traveling 3-4 days a week out of town, which would be stressful.
The work has been steady, just the overhead is high. It is the oldest business of its kind in our city and they have alot of repeat customers Ovehead went from 4k a month to 13k and for having one employee 13k a month is alot to pay. They still have average 15k month in profit, but after 13k overhead does not leave enough with 4k it was fine.
One person in our city bought up most of the prime downtown and that is when the rent raised. It took 4 months to get a slightly smaller place but it was still higher rent. The owner also stated that if the situation changed, he would bring him in as a partner or re-instate the salary. I have no reason to not believe the owner. Several times there were smaller financial issues with the company and the owner always paid the employees and did not draw his own salary.

O.k this question has several parts:
Attempting to claim standard mileage deduction on taxes, on the form it requests "Business" ; "Commuting" and "Other", is "Business" only included in figuring the deduction amount?

Let’s say you install flooring for example…

You drive from your home to the flooring store that sold the flooring to the customer,and subcontracted you to install the floor. Is this mileage classified as "Business" or "Commuting" ?

You transport the flooring to the customer’s location, install it and travel back to the flooring store to turn in a bill, and ask if they have a job for you the next day. Are these miles classified as "business"?

You leave the flooring store and return home. "Commuting" or "Business"?

You leave the job site and travel to Lowes or Flooring Store for supplies. "Business" or "Commuting" or "Other"?

You leave one job site and travel to another to begin work. "Business" or "Commuting"?

You leave the job site and return home. "Business" or "Commuting"?

Thanks.

I am allowed to make a few extra bucks by trying to make sales, and that position is considered contract labor, making me liable to pay my own taxes, just like being self employed.
But recently my employer as started deducting from my hourly wages any and all returns from my sales position, even if I have not made any sales in weeks!!! Is this legal I gave no consent to have such deductions withheld from my hourly wages,,,,,,,,this doesnt seem fair to me……..a cpl weeks ago she deducted more from my hourly wages in returns of sales than I took home she deducted 55.00 and I only had a 42.00 ck. IS THIS LEGAL PLEASE HELP SOMEONE ASAP
GETTING RIPPED IN THE SHORTS IN ARIZONA
THESE are 2 different positions, sales is with the sales staff and the verifing is with administration on an hourly wage not commision, they are 2 different positions
I can see and would understand if she deducted my returns from future sales but not my hourly wages from an entirely different job position in a different department
HELP!!!!!PLZZZZZZZZZ

I didnt have a job last year and this year i started doing phone psychic work from home. I’m going to make probably under 10,000 in total for the year (possibly even less; my income from it fluctuates alot monthly, depending on how many people i consult) I know im probably going to owe about 1400-1500 or something like that and I’ll obviously begin sending in estimated payments based on this years income beginning next april. But I’m worried that I misread the rules for estimated taxes and may owe penalties….I also heard that filing schedule c’s tend to get audited alot. I have barely any deductions (mostly a small amount of paypal fees), what’re the odds that I’ll get audited? I’m new to all this so I just want to get a feel for it because I’m a bad worrier.
Thank you for replying and your information but I’m asking if I’m going to be penalized for not paying estimated taxes this year (it’s already too late to do so considering I started working at the beginning of the year) if I made no money last year…
Thank you tax lady… That’s the exact info I wanted. I’ve been reading alot online about schedule cs being audited and I think it made me really paranoid thnking of having to sit down And go over my records with an IRS agent. Even though I’ve kept good records, it’s a scary thought

Well, I am interested in opening a home daycare in VA and I was wondering if anyone is familiar with the taxes that VA charges and also if you have to get a Business license to operate bc I only want to have 6 children in my home. I don’t want to get licensed by the DSS. But I am not familiar with the taxes if you have to have a business license to file taxes and get deductions or what. Anybody that can help me it would be greatly appreciated. Thanks!
Also I am not interested in rude comments. I just want to see if anyone knows any info, bc its night and I am needing some info tonight if possible. I am on a timeline with my job so the sooner i can figure things out, the better for me!!!!

I just began a job working for a company as a bookkeeper with part-time hours. My work hours are classified as contract labor. I am the only (employee?) there so they didn’t want to set up payroll for one person. I agreed to pay my own taxes. I will issue myself a 1099 at the end of the year. Which box would I put my total income made? Can I keep tract of my commute mileage for a tax deduction? I will be driving approx. 30 miles one way. What about tolls? I will probably just take a lunch to work but if I eat out, how about meals as a deduction. Now to make things more complicated, I will be filing married, joint return with my husband and his self-employed business income. I do not have a business of my own. We have our taxes done by a CPA so there is no problem there. My problem is mileage b/c he has mileage too and we have one cell phone to share for my work and his work. Any help will be appreciated. I know to keep all receipts. Thanks in advanc