independent contractor


M

m

Hi

I am working part time in a CPA firm as a contractor. I will get 1099 at the
end of the year. What are tax and accounting implications for me as an
independent contractor?

Thanks,
M
 
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A

Arthur Kamlet

I am working part time in a CPA firm as a contractor. I will get 1099 at the
end of the year. What are tax and accounting implications for me as an
independent contractor?
File Form 1040 Schedule C and SE.

ALso calculate estimated taxes -- see Form 1040ES and Pub 505.

Get Pub 334 which is for those who operate small businesses,
including your one-person sole proprietorship.
 
M

m

Thanks

Which expenses can I deduct as a contractor? Do I have to maintain books of
accounts for the same?

regards
m
 
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M

m

thanks
m
Jay said:
This is a joke, right?

You're at a CPA firm and you're asking us amateurs? ;-)

Seriously, the answer to your question really is in Schedule C (and its
instructions) and in the IRS publications on the topic. There's a lot of
detail (more than can be included here). Most of it probably doesn't apply
to you, but only you can really decide what does or doesn't.



Yes. A simple Excel workbook has worked for me:

- One sheet lists payments received by payer and date, and sums them.

- A second sheet lists expenses:
Each row is an expense.
Each column is a category on Schedule C, so I can just sum the columns
at tax time.
There are also columns for "Date," "Payee," "Description," and "How
paid."
There's also a column for auto mileage.
The idea came from an old-fashioned expense-report form.

You can get fancy software for the purpose, but unless you're situation is
more complex than you've described, I don't see the need.

Another benefit of being an independent contractor is that you can save
more in a retirement plan than you typically can as an employee. There are
several choices.
 

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