Filing Taxes as a ContractWorkerBrief Description: When you are takingthe time to understand how you are goingto file taxes as a contract worker you haveto be smart. This article describes howyou can be sure that you are able to behonest and accurate with your taxes.When you are working as a contractworker you have to make sure that you are taking the time to learn how you are going to file yourtaxes. There are a lot of people that have a hard time understanding how they are going to bewise about filing taxes.Keep record of your payrollFirst, you want to make sure that you are keeping an accurate record of your payroll. There are alot of people that have a hard time understanding how they are going to pay their taxes whenthey 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 downthe amount that you received. You should also make sure that you write down the date that youreceived the check.While you are taking the time to understand how you are going to be honest with your taxes youshould be referring to the internal revenue service and the laws that they lay out. The internetprovides a comprehensive list of these laws.1099 FormSecond, you want to make sure that you get a 1099 form filled out. You want to make sure thatyou are taking the time to print out a 1099 form so that you can start to fill out the form and sothat 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 muchmoney your employer paid you. You should receive this form and start to fill it out by the end ofJanuary.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 simplybecause they are rushing through the forms.
You want to make sure that you are taking the time to file and pay the estimated tax quarterlythroughout the year. These are the taxes that would have been taken out of your paycheck if youwere not a contract worker.When you are determining what forms you will have to fill out you should make sure that youunderstand the company that you are working for. If the employer is a proprietorship you willwant to fill out a 1040-ES form and if your business is a corporation, a 1120-W form.Self- Employment tax 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 theyare doing.Finally, when you file your 1099 form you will know if you are going to owe taxes or get arefund. You have to make sure that you are taking the time to understand how you are going tobe smart about paying your taxes continuously throughout the year.You have to make sure that you are taking the time to understand how you are going to be wiseabout hiring a professional. When you file your taxes with a professional you will be sure thatthe paperwork is filled out properly.Working out problemsIf you have gotten into tax troubles in the past you want to make sure that you are taking the timeto understand how you are going to work out your problems. You should be wise about the waythat 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 totallyhonest about your money. Make sure that they understand what you have and have not beenpaying and how much money you are earning.Although you may be embarrassed, you want to be sure that you are honest. The more that theprofessional company is able to understand about your situation the easier it will be climb yourway out of your problems.
Finally, you should make sure that you take the time to understand how to be wise about yourspending habits when you are trying to get out of debt. Getting out of debt with the governmentcan be hard, but it is possible.Photo credit: FD, 401(k)2013