Independent Contractor: how to file taxes??

Question

i just worked as an independent contractor on a saturday, outside my full time job. How do i file taxes for that? and is it for both state (i live in CA) and federal taxes? And also, i only made $500; is that enough to be taxed, or is there a limit that needs to be reached first?

thanks so much for your help!

Answer 1

Since you are already filing a return due to your full time job, your contractor income must be reported from the first dollar.

You'll file a form 1040 for your regular job income, and use a schedule C or C-EZ and a schedule SE along with it - the numbers from the bottom of the schedules will transfer to your 1040 to calculate your total tax.  This is for federal - I don't know what the forms are for CA.

With $500 contractor income, you won't owe enough to have to worry about quarterly payments.

Answer 2

$400 is enough to be taxed as an independent contractor.

You report your income on a Sch-C. You fill out Sch-SE to figure the tax you owe. You take the credit allowed back on the 1040.

If you have less than $600 you don't need to file quarterly.

Answer 3

Read about self employed (or independent contractor) tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-...

Answer 4

You will need to file Schedule C-EZ, which is an attachment to Form 1040.  You will be able to claim your mileage to and from this job but that is probably not going to be enough to get you under the limit for self-employment tax (Sch. SE).  Save at least 25% of the money for taxes.

Answer 5

It would be reported on Schedule C.  

Answer 6

unless you plan on doing it more times then once and since you made less then 600 dollars, it is not taxable. but if you start doing every weekend or more times during the year then you should start filing quarterly taxes or otherwise you will be owing the gov a lot of money.