Home Improvement Contractor - Licensed Contractors
What will I pay in taxes as an Independent Contractor & Dependent?
I am working as an Independent Contractor & I am also a full-time student and my parents claim me as a dependent. I made around $3,000 so around how much will I pay in taxes? I'm just trying to figure out if I will pay more or less being a dependent....Thanks!! :)
Public Comments
- About $450 in self-employment taxes and nothing in income tax. At your income level your dependency status doesn't matter.
- You shouldnt be paying anything. I believe you are under the limit. You should pay social security if you work as an independent contractor so you can earn benefits when you retire.
- Being a dependent won't make a difference. You won't owe income tax, but will owe around $424 in self-employment tax - that's whether you are a dependent or not.
- I have a canned explanation to apparently clueless independent contractors and, if you are asking relatively simple questions in this forum, no offense, but you qualify as clueless: Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.
