Home Improvement Contractor - Licensed Contractors

Im working from home as an Independent Contractor, does anyone know how I pay taxes?

$400 a month or year??? How can I pay monthly verses waiting until the end of the year? Will it effect the return I get next year?

Public Comments

1. Schedule C. If net earnings are more than $400, you would also file schedule SE to pay the 15.3% SE tax.
2. in conjunction with a 1040, you should use a sch C. My best advise is go see a Pro, like Block or Hewitt
3. you can choose to pay in throughout the year, or you can wait and pay self employment taxes at the end of the year. it's your choice.
4. If you don't know how, find yourself a certified tax preparer.. Ask your friends who they go to... In the long run , this is cheaper than you trying to muddle thru on your own.....
5. You should do estimated tax payments quarterly for both the federal and state payments. They are available from irs.gov and your states web page. The money you make will be reported on a Schedule C. Be sure to keep receipts for any "office expenses" you have throughout the year, along with utility bills as you can get a deduction for having a home office. Additionally, keep track of any mileage you have for work