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    ICMTKoala's Avatar
    ICMTKoala Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 15, 2008, 01:13 PM
    1st time IC/how to estimate taxes first year?
    I have just started working as an IC medical transcriptionist. I would like to know if and when and how I need to pay estimated taxes. I am also an employee 20 hours a week for another company. How do I estimate taxes for the IC job if I do not know what the income will be? Or do I even have to? I will probably make approximately $5,000 from now until 12/31/08. Also, I thought I read something about changing my W4 deduction as an employee to cover the taxes for IC?

    HELP!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 15, 2008, 01:17 PM
    If you are going to make only $40 per week for the rest of the year, you can increase your withholding from your salary at the other job to cover your tax liabilty for the IC job.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    May 15, 2008, 07:40 PM
    If you are an employee, your employer will withhold taxes from your paycheck and you will get W2.

    If you are an independent contractor, you will get 1099-Misc and you pay your own taxes.
    How you will treat the 1099-Misc income and W2 vs 1099-Misc, read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.
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