Ask Experts Questions for FREE Help!
  Advanced
Register  |  Log in  
   Ask    
 Answer  
  Help  

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now
3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Business & Careers > Home-Based Business   »   Taxes for Independent Contractor

 
Thread Tools Display Modes
Question
 
 
#1  
Old Jun 28, 2007, 09:05 PM
Gina77
New Member
Gina77 is offline
 
Join Date: May 2007
Location: South Carolina
Posts: 18
Gina77 See this member's comment history on his/her Profile page.
Taxes for Independent Contractor

I just started to do work from home for a few different companies. All of which do not send a 1099 unless I earn around $400-500.

I checked on the IRS website and found that I have to claim any income in excess of $500. If I earn over $500 in one year but it is split between say 4 companies and none of them are required to send me a 1099, am I still required to file and how do I do that without a 1099? I am keeping track of all the income I receive and from who, but would that be "proof" of the income? I don't want the IRS coming back to me saying I didn't pay taxes or enough taxes.

Reply With Quote
 
     

Answers
 
 
Old Jun 28, 2007, 09:21 PM   #2  
Arts & Small/Home Business Expert
Clough is offline
 
Clough's Avatar
 
Join Date: Mar 2007
Location: Rock Island, IL
Posts: 12,886
Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.Clough See this member's comment history on his/her Profile page.
I'm not a tax expert. But, I am a self-employed person - an independant contractor. Have been self-employed as well as employed by others for most of my life. But, most of the time it has been by self-employment.

Most of the work that I do is in other people's homes. They either write me a check, or sometimes pay me cash. Either way, if the IRS really wanted to do a check on me, they would be looking into all of my bank accounts.

When I receive a check, I make a photo-copy of it. When I receive cash for payments, (some people just don't like to write checks), I write the customer a receipt. Those are my proofs of what I have made. I also use Quicken to keep track of everything.

My attorney is a tax attorney. Thus, he does my taxes for me. To date, over the many years that a good portion of my income has been through self-employment, no one who would know anything has ever raised an issue with my accounting methods. It could be the same in your case, if you are meticulously keeping track of everything.

I suppose there might be an issue if I was making really big bucks. But, I don't really know. I don't make really big bucks.

Hopefully, someone will come along who is really knowledgeable about withholding and tax issues.
  Reply With Quote
 
     

Bookmarks


Thread Tools
Display Modes

 
Similar Sponsors

Similar Threads
Question Asker Forum Answers Last Post
Independent Contractor dhlunar Taxes 2 Mar 8, 2007 11:33 AM
Independent Contractor PoinDixie Human Resources 2 Feb 23, 2007 03:58 PM
Independent Contractor m3lissa Taxes 3 Jan 30, 2007 10:27 AM
Independent Contractor? adpilove Taxes 6 Jan 25, 2007 11:37 AM
New independent contractor candice1970s Taxes 2 Jan 29, 2006 07:06 PM




Copyright ©2003 - 2007, Ask Me Help Desk.
All times are GMT -8. The time now is 08:21 AM.