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View Full Version : 1099-Misc taxes and deductions?


crua9
Jan 8, 2011, 11:39 AM
I'm working as a freelancer in USA and most of my projects I higher other freelancers to do my work. I tend to pay them around 40% of what I make or lower. For example, I worked as a SEO and I was paid $750 for the job and I paid someone $200. Another job I was paid $300 and I paid someone $75. Being that I have to use my computer, phone, etc for almost all my work, I was wondering if I will get a deduction on those objects and I was wondering if I get a deduction for hiring these other freelancers to do the job and without most of them it wouldn't had happen

I just started doing this real recently so hypothetically, by the end of the year if I'm paid $15k by someone in America and I pay people in America over all 30% ($4500) of that then what will I have to pay on taxes?

I use freelancer.com to find my work and I only use guru.com to hire people since it makes the taxes forms and sends them out for me. And if gives me everyone W-9 forms that works for me.

Also, some of the money I already got this year was from people in other countries like Australia. They paid me over $600, so do I have to worry with a 1099 since they are in another country? On top of that I higher someone in that area and also India. Is there any tax forms I got to deal with since they were freelancers in other countries?

Thank you a bunch. I'm doing this so I can save up for my own place and I don't want the IRS to hound me when I'm just trying to live a good life.

MukatA
Jan 9, 2011, 09:35 AM
You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)