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Working as an independent contractor and taxes?

post #1 of 6
Thread Starter 
I work at a full time job that provides about 90 - 95% of my income, and then put in about 3 hours a week working as an independent contractor. For that I get a check with no taxes etc . . . taken out.

What do I have to do come tax time to account for that income -- just add it up, and write it on a line somewhere? Or do I have to fill out other forms?

Also, I usually get the check about a month after I do the work, so do I count the money I earned in December and will receive in January as 2008 or 2009 income?
post #2 of 6
They should send you a 1099 form showing what they paid you in 2008.
post #3 of 6
Quote:
Originally Posted by SoHappy View Post
They should send you a 1099 form showing what they paid you in 2008.
yes, this

if they don't send you a 1099, call and ask for one.
post #4 of 6
Money received in 2008 is taxed in 2008. Money received in 2009 is taxed in 2009
post #5 of 6
If it's over $400, you will need to pay Self Employment income on it. So you'll need at least a form called Schedule SE to figure out how much that is. If you have any expenses, then you will probably want to also fill out a Schedule C.

How much you made from your independent work goes right on the 1040 form under Income, and then the self employment tax goes on the second page under Taxes. You can also take a deduction of half your self employment income on the 1040 under Adjustments.

If you made less than $400, then just stick the total on the line for "Other Income" on the 1040.
post #6 of 6
If you earn over $600 in a calendar year as an IC, then you will get a 1099 mailed to you.

If you don't make over $600 in a year a 1099 will not be issued nor would it be reported to the IRS. Techincally, any monies earned should be reported, but it will not be reported unless that amount is over $600.
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