I have a part-time translation job (freelance) and made about $3,500. I just received a check but nothing is deducted like federal tax or state tax etc. How do I pay tax from those income? Full time job, taxes are already deducted on the check and they give me W2 in the end of the year, so I just take it to the H&R etc. All I know I have to claim this income in the end of this year but what else I have to do? Sorry I am new with the side job and I am not familiar with tax situation in U.S. I'd be glad if anybody does translation job as a part-time and give me advices about tax. Thanks.
United States - 4 Answers
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1 :
You'll file a Form 1040 return and show the self-employment income on Schedule C along with any legitimate business expenses. If the net is over $400 then you must attach Schedule SE to figure the self-employment tax. The SE tax is calculated at roughly 14.1% of the net profit. Any income tax will depend upon your total income. If you're in a 15% bracket (pretty typical) then you'll need to set aside 30% of the net for taxes. Ideally you should make an estimated tax payment using Form 1040-ES http://www.irs.gov/pub/irs-pdf/f1040es.pdf by Sept 15th. If you have no other SE income for the year the one payment will be sufficient.
2 :
If you're going to Block, take along the 1099-misc the company should send you, or your records of what you made if they don't send you a 1099. Also take your records of any associated expenses you had. Your freelance income will go on a schedule C, and you'll also use a schedule SE. The numbers from the two schedules will go on a form 1040 (not EZ or A) along with the info from your W-2.
3 :
The tax laws do not distinguish between part-time and full-time work. They do distinguish between work as an "employee" and work as an "independent contractor". Your full time job (but not all full time jobs) are work as an employee. Your part time work (but not all part time work) is work as an independent contractor. Income from work as an independent contractor must be reported as "business income" on either Schedule C or Schedule C-EZ. In most cases, self-employment tax must be paid in addition to ordinary income tax. H&R Block can figure out the amount of tax when you go to them. You must keep track of the amount of money that you receive. You should receive a 1099-MISC that you can bring to H&R Block; if you do not receive it, then you must use your own records to document how much you made. Also, you must send an "estimated" amount of tax money to the government, rather than waiting until it is time to file. Download Form 1040-ES from http://www.irs.gov and use it to calculate how much to send.
4 :
Firstly you should go to IRS.GOV and get a free Pub 17 for lots of "show & tell" intel on your tax setup. For tax year 2009 you will have to file a form 1040 and include your self employment income on a Sch C; with a Sch SE for your FICA/MEDICARE tax. On the Sch C you put your gross income of $ 3,500; then under expenses put down any expenses relating to this self employment income; mileage at rate of 55 cents a mile, to and from job, cabs, parking fees, cell phone, notebooks, office supples, continuing education or training, business meals while away from home working, lodging, read up on this in the Pub 17. You may have grossed 3.5K but the bottom line may even be a loss depending on your expenses. Good luck
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