Hello!
I just started working part-time as a consultant for a school institution, and I have several questions about self-employment taxes. A lot of this is new to me, so thank you in advance for your patience!
My contract states that I am an independent contractor and not an employee of the school, so I assume I will get a 1099 at the end of the year.
My questions are:
1. Do I still need to pay taxes quarterly if this is just a part-time job?
2. If so, how/where do I do that, and when am I supposed to begin paying?
3. How should the institution that hired me handle reimbursements? If reimbursements are included in my monthly stipend, it will look like I generated that much in income and will be taxed accordingly; however, is that where deductions come in? Can I deduct those expenses when I file my taxes, even though I was reimbursed?
4. If I can't deduct what I was reimbursed for, is it more cost effective to not get reimbursed and just save those items to be used as deductions on my tax return?
5. Can I claim/deduct money spent on food and (non-alcoholic) drink while traveling for work?
6. Finally, moving forward, if I continue in the work of consultation services, is there a "best" way to do it (ex. independent contractor, create a business, or request to be hired as an employee so I can get a W-2, etc.)?
THANK YOU!
