For the first time, I will be working as an independent contractor as opposed to an employee. I will live and work in New Jersey. Besides federal and state income taxes, what other taxes will I have to pay and how do I determine the amount, to whom, and when I pay them? I understand I may have to pay SDI, SUI, and social security.

wow - things work so different in America to the Uk - very interesting. I apolgise I cannot help you out on this one. Just find things like this really interesting.

Andrew S:

If you are an independent contractor, you will receive a Form 1099-MISC instead of a W-2.

You are responsible for paying income taxes and both sides of the Social Security (12.3%) and Medicare (2.9%) taxes.

You will need to file Form 1040 with Schedule C (to report your Form 1099-MISC income and all your allowable expenses) and Schedule SE (to report the Social Security and Medicare taxes).

You will also owe NJ state income taxes.

I suspect you will also owe SDI and SUI taxes, but since I do not practice in NJ and do employment taxes for residents of that state, I am not thoroughly familiar with that aspect of the NJ taxes.

No matter, because your situation absolutely screams for professional tax help. I suggest you contact a local NJ-based tax professional immediately (before the end of the year) before they get too busy to help you properly.