I have been working as an Independent Contractor for my employer as of 9/11/08. I didn’t have a paycheck by the 9/15 so I will be paying my income from 9/11 on by the 01/15/09 quarterly pay date for small businesses. By the end of the year I will have earned about ,400 from this job. The only deduction I have is about for transportation.

I also held another job earlier in the year from which I earned about 0. Social Security and Medicare were witheld, but not income tax. Altogether I will have earned under the ,200 limit for the entire year of 2008.

What I am unsure of is if I still need to pay income tax. My quarterly earnings are such that I would have earned a taxable amount had I earned that much every quarter, so I am confused about that.

Also, how much of the 15.3% SS&M do I need to pay? I’ve seen literature talking about how half of Social Security and Medicare is usually paid by employers, half of it can be deducted from net earnings…it’s all very very confusing to me.

If anyone can give me an answer, or clarify this that’d be great. I’m not in the market for consultants (I already know some.)

CASUALTY LOSS (BUSINESS OR PERSONAL?) tax deductibility question

Assume an individual has a boat where he entertains clients.
(1) If the boat sinks and he qualifies for a Casualty Loss deduction under Sect 165, where is the authoritative literature that guides whether it is a business casualty loss or a personal casualty loss?
I have been searching the Code, common law, and publications.
The only thing I have found is under Publication 463, entertainment expenses that are subject to the 50% deduction.
(2)If the boat that the individual used to entertain clients was subject to the 50% limitation, would it also qualify the loss to be a business casualty loss?

(3) The boat sinks due to an "other casualty" and he is alone on the boat

Can anyone provide for me primary sources on how to view whether the boat can be a personal or business casualty loss? And if he obviously used the boat at times for personal and sometimes for business, where is the authoritative literature on this?

Thanks in advance!