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    alex_martine2001's Avatar
    alex_martine2001 Posts: 1, Reputation: 1
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    #1

    Feb 1, 2006, 08:51 PM
    Tax Advice for Independent Contractor
    I have a full time job and pay Uncle Sam on a reg basis.
    However, this year... I had the opportunity to earn a nice amount of $$ on the side, offering my Music Production Services in my spare time. This was done from my own home and it generated me approx $25,000. Would someone give me advice on the best suited approach for me to take. My other job doesn't generate an incredible amount so, I'd like to make this $$ work for me. TY in advance.
    Al
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 1, 2006, 09:26 PM
    Al:

    You need to file Form 1040 with Schedules C (to document the income from the music business) and SE (to calculate the self-employment tax of 15.3% of net shown on Schedule C).

    Expect to pay some money unless you have been making estimated tax payments.

    You do have some deductions: mileage associated with the music business, equipment costs and possible Business Use of the Home.
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