Home Improvement Contractor - Licensed Contractors
How do I file my taxes as a independent contractor for ChaCha.?
I worked for ChaCha as an Independent Contractor for 3 months (Sept/Oct/Nov) and made about $900 total. I canceled my account a few days ago because they changed things and suck now. It's the only money I've made in the past 3 years. How much of that do I need to keep aside for taxes? and how do I go about filing my taxes? My mom claims me as a dependent I think... since I still live at home...can I still get a personal exemption?
Public Comments
- You don't have to set aside anything. Your standard deduction and the exemption for one person is close to $7,000 (more or less). So you could make up to this amount and would not have to pay one cent of taxes. Im sure an accountant will give us the exact amount in one of the answers
- ChaCha is self-employment income. $127 in self-employment tax. Your dependency status does not reduce the self-employment tax bill. If you are under 19 (or under 24 and a full time student) and do not support yourself, you are a dependent. If you are older than that, but made less than $3500 and your mother can show she provided more than half of your support, you are still a dependent. When you fill out the 1040, you wouldn't claim your exemption.
- You must file tax return if you income as independent contractor is $400 or more in a year. You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax filing: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html
