I work as an independent contractor doing computer tech support. I’ve never been paid before as a contractor so i’m not too sure about the whole tax thing. My main question is this. A few months back I got a federal tax ID for a business I wanted to start. Well would it be more financially benifical to me to have my employer pay me directly as an independent contractor or should he pay me under my company name and federal tax ID number?
Which one would give me more deductions?
Also what percentage would I want to deduct to cover taxes if I was in the K-K and K-K a yr pay range, being single, no assets, no property, 1 child not claiming as a dependent.

Hi. I have Turbo Tax 2007 Home and Business. I started a new company last year. No revenues – only expenses. I rent where I live. I tried to add my home office as an expense, but it didn’t work with Turbo Tax. I think it’s a bug in the software. I was on the phone for an hour with their tech support, and he had the same issue. Does anyone know which fields I can fill out to over-ride their software and enter my deductions? I looked on the form, and it’s going to bring my home office expenses over to 2008. Not sure why. Thanks. And, I know it’s last minute being April 14th and all.