[mehulyo]

I am contacting you to find out if you can help me with 1099-MISC tax filing and deductions ?

I just started working as an independent contractor. They will pay me every month without deducting any kind of taxes and I will be responsible to pay all kind of taxes.They said they will provide me 1099-MISC at the end of the year . I have following questions

I am a U.S Citizen, and I live in California, So what forms should I be using for filing taxes ?
I am not considered a business correct ? Because I don't have any business I just signed the contract as an Independent contractor.
Do I have to pay taxes quarterly or end of the year ? If quarterly than which form should I be using to pay federal,state, social security and any other taxes ?

I travel every day by train to that work place. I have paid for my monthly pass, so do I get to deduct this as my expenses or no ? What kind of expenses are appropriate expenses ?

They have not even provide me a cell phone ? So can I buy a cellphone and use it as a deductible expense ? I will use this phone at work place to contact the people I am working with and may be even provide them my number so if they have any questions or concerns I can respond to them ?

Can I use my lunch expenses and car gas money as expenses as I keep my car at the station and than I drive from station to office which is 10 miles a day ? Can this kind of things count as deductions ?

I have a mortgage. My wife and kid are dependent ? Can I use all this things as deductions to bring my actual tax bracket down ?

Can you please help me by providing the list of forms which I need to fill out, or use it for calculations , and how and when am I suppose to pay taxes because I don't want to be in debt with IRS.

I am asking all this questions because I have never been a contractor and this is for the first time I have done something like this and I want to do the right thing for my next year taxes.

Thank you.

[AtlantaTaxExpert]

Redundent post; already answered!

[ryanfitz1604]

Redundent post; already answered!

I know this was posted a long time ago but I cannot find where it was already answered and I have basically the same situation more or less. Additionally, should I make myself my own company and then pay myself from that?

[AtlantaTaxExpert]

Okay, I'll answer it again.

You ARE considered a business and must file BOTH Schedules C and SE with Form 1040 for the federal return. I do not know the California forms off-hand, but there are equivalent California forms.

You need to file and pay quarterly taxes using Form 1040-ES for the federal taxes and the California equivalent for Calfornia.

Sorry, your travel to and from work are COMMUTING expenses, which are NEVER deductible. The fact that you are an independent contractor is irrelevant.

You CAN deduct the business use of your cell phone on the Schedule C. However, you MUST pro-rate the costs between business and personal use.

The car expenses as described is still commuting expenses. Your normal lunch costs are NOT deductible unless you are entertaining clients, and then only 50% of the costs are deductible.

You can claim mortgage and real estate taxes as itemized expenses.

You will file jointly with your wife and claim your children as dependents.

Your situation SCREAMS for professional tax help. I recommend you interview a local independent tax professional RIGHT NOW before he gets busy with the upcoming tax season. He will charge for his time, but it is money WELL SPENT if it keeps you from making any number of mistakes that could cost you BIG with either the IRS or the state of California.