Filing Taxes as a Contract Worker

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					Filing Taxes as a Contract Worker
Brief Description: When you are taking the time to understand how you are going to file taxes as
a contract worker you have to be smart. This article describes how you can be sure that you are
able to be honest and accurate with your taxes.

When you are working as a contract worker you have to make sure that you are taking the time
to learn how you are going to file your taxes. There are a lot of people that have a hard time
understanding how they are going to be wise about filing taxes.


Payroll records

                                            First, you want to make sure that you are keeping an
                                            accurate record of your payroll. There are a lot of
                                            people that have a hard time understanding how they
                                            are going to pay their taxes when they have not kept a
                                            good record of their payroll.

                                            Whenever you get a paycheck from your employer
                                            you want to make sure that you write down the
                                            amount that you received. You should also make
                                            sure that you write down the date that you received
                                            the check.

While you are taking the time to understand how you are going to be honest with your taxes you
should be referring to the internal revenue service and the laws that they lay out. The internet
provides a comprehensive list of these laws.


1099 form

Second, you want to make sure that you get a 1099 form filled out. You want to make sure that
you are taking the time to print out a 1099 form so that you can start to fill out the form and so
that you know what paperwork is required for the form.

The form that you are filling out will give the government all of the information about how much
money your employer paid you. You should receive this form and start to fill it out by the end of
January.

When you are filling out your taxes you want to be sure that you are starting as early as possible.
There are a lot of people that wait until the last minute and then make hasty mistakes simply
because they are rushing through the forms.
You want to make sure that you are taking the time to file and pay the estimated tax quarterly
throughout the year. These are the taxes that would have been taken out of your paycheck if you
were not a contract worker.

When you are determining what forms you will have to fill out you should make sure that you
understand the company that you are working for. If the employer is a proprietorship you will
want to fill out a 1040-ES form and if your business is a corporation, a 1120-W form.

You have to make sure that you file and pay a self-employment tax. These taxes are going to
cover your social security and Medicare taxes so that you are going to be able to draw from your
social security funds.

When you are filing your tax return during tax season you want to make sure that you are wise
about doing your taxes correctly. Some people have a hard time with this simply because they
do not know what they are doing.

Finally, when you file your 1099 form you will know if you are going to owe taxes or get a
refund. You have to make sure that you are taking the time to understand how you are going to
be smart about paying your taxes continuously throughout the year.


Hiring a pro

You have to make sure that you are taking the
time to understand how you are going to be
wise about hiring a professional. When you
file your taxes with a professional you will be
sure that the paperwork is filled out properly.

If you have gotten into tax troubles in the past
you want to make sure that you are taking the
time to understand how you are going to
work out your problems. You should be wise
about the way that you are working through
money that you owe to the internal revenue
service.

While you are working with a professional company you should be sure that you are totally
honest about your money. Make sure that they understand what you have and have not been
paying and how much money you are earning.

Although you may be embarrassed, you want to be sure that you are honest. The more that the
professional company is able to understand about your situation the easier it will be climb your
way out of your problems.
Finally, you should make sure that you take the time to understand how to be wise about your
spending habits when you are trying to get out of debt. Getting out of debt with the government
can be hard, but it is possible.

Photo credit:401(k)2013, Images_of_money

				
DOCUMENT INFO
Description: When you are taking the time to understand how you are going to file taxes as a contract worker you have to be smart. This article describes how you can be sure that you are able to be honest and accurate with your taxes.