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  1. #1
    Senior Member peezybro's Avatar
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    Well i am 19 years old and I am new to taxes. I got a job for a online company a website designer. "more of helping the main people" but i was hired as a independent contractor. Witch i have to file my own taxes at the end of the year. What i need help with is what forms do i have to file at the end of the year and when do i pay these taxes? I did some research but am very confused. I have to pay state, fed, and self-employed taxes. Is there any other taxes i have to pay?

    A bit more information i work about 28 hours a week and get paid $13/hour.

    A general question i have is do you file your tax return the same time you file your taxes? or how does that work?

    thanks ahead of the time for anyone taking the time to help me out.
    "ON TIME, ON TARGET, NEVER QUIT"


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  3. #2
    Senior Member Webzarus's Avatar
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    Huh ?

    The online company should have provided you a 1099 for what they have paid you.

    The 1040 form that you will need to file will be determined by several factors that you need to figure out... 1040ez can be used if you're planning on using all the standard deductions and have made less than 56,000 ( I think ), youll need to verify that figure, and you aren't planning on claiming anyone but yourself as a deduction ...

    A 1040a is filed if you can qualify for using the 1040ez ... Of you are waning to itemize your deductions...

    Once you have calculated all your numbers ( based on the forms you use ), it will tell you then what ( if any you need to pay ... And yes, that amount needs to be paid when the return is filed.

    Since everyones situation is different, there is no simple answer. I would suggest that if you are having problems understanding, seek some professional help, or use one ofthe online services...

    You'll probably be better off paying someone as they can possibly guide you to more informed answers based on your " business ", needs. They can also help you plan better for next year, and depending on the situation inform you about paying your business taxes ( estimated ), on a quarterly basis.

  4. #3
    Member loanuniverse's Avatar
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    To be honest it does sound more like you were a regular employee than a contractor. However, your employer decided to call you a "contractor" to get away from paying benefits. Because you are classified as a contractor, you will probably need to file a 1040. Get your 1099 and head over to

    http://www.irs.gov/freefile

    I assume that you made less than $50,000 a year so you should be able to file for free using that link.
    When you fill out the 1040, you will be able to pay the self-employment tax. After you are done doing the federal tax you will need to file the state and you will need to get in touch with the proper state agency for the form.

    Now for the bad news: As a contractor, you have not had any taxes witheld. This means that there is no return in your future, and probably going to have to pay.

    Edit: I just went to that link and saw that Turbotax is one of the companies that works with the IRS to do free taxes for people that made $31,000 or less. I would pick them, see if you can sort it out by yourself first. If that does not happen, then pay someone.
    It's good to be back on the forums!
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  5. #4
    Senior Member Webzarus's Avatar
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    Btw... You 'll only have to state, federal and any local taxes... Again... Depending on how you set everything up, you should be covered with just that...

    Get professional advice...

  6. #5
    Senior Member peezybro's Avatar
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    Thanks for your advice and help. I most likely will do one of the online services, but i just wanted to get a understanding of this all. I have only had this job for a month now, so i wont have to pay taxes in till next year.

    From what i recall i have not received a 1099 from my work. Do they give this when you start or when the time comes to file taxes?
    "ON TIME, ON TARGET, NEVER QUIT"


  7. #6
    Senior Member Webzarus's Avatar
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    If you've only had the job for a month, then it has no bearing on last years taxes... Anything made after jan 1 2012 wontbe due until apr 15 of 2013...

    You should receive a 1099 by the end of jan in 2013, from them... It will be a summary of the total amount they paid you as a contractor.

    Just keep in mind, that everyone that holds a job at a company that pays them as an employee, has a certain amount withheld every pay period, these are paid in as the year goes along... At the end of the year, the people have to file their taxes and either pay more in or get a refund...

    On avg the withholding will be 20-28% of their gross... Covering all the taxes... I suggest you set aside some money from every check you receive specifically for taxes... As you will have to pay them... It's a whole lot easier to put away 25% out of each check, than come up with 25% of your total at the end of the year...

    Just a suggestion.

  8. #7
    Senior Member peezybro's Avatar
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    Thanks for all the help. I will leave about 25% out of each pay check and worry about this more when time comes.
    "ON TIME, ON TARGET, NEVER QUIT"


  9. #8
    Member loanuniverse's Avatar
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    Try the link in my first post Peezy, it should allow you to file for free.
    peezybro likes this.
    It's good to be back on the forums!
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  10. #9
    Senior Member peezybro's Avatar
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    I will take a loot at more when i get time. Thanks...
    "ON TIME, ON TARGET, NEVER QUIT"



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