I retired from a local government in 2020 and receiving regular pension. As I have several licenses that were hard earned and I have no intention of giving them up, but they do cost me to keep them every two to three years as I need to renew and take some continue education to keep them. Can I just changed my reporting status s back to Civil Engineer like I am still working without a W2 form to report?
Also if I keep that, would I be able to deduct some expenses like buy a new PC etc? Also can I work on simple project without getting a business license?
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Do you mean you are working now as an independent contractor? Are you doing some sort of consulting etc? If so you will have self-employment income from which you will pay self-employment tax for Social Security and Medicare, and for which you will prepare a Schedule C for business expenses.
As for licensing---that would be a state matter which you would have to explore with your state. The IRS does not require you to have a license to do business as an independent contractor.
https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax
https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-
calculator-2021-2022-50907/
https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs
https://turbotax.intuit.com/tax-tools/calculators/self-employed/
You can only deduct those expenses if you have a business so you would need self employment income on which you would pay self employment tax as well as regular income tax
Thanks. I would like to be an independent contractor if any project come along but I would go all out to get a business. What if, I don't have any project for the whole year?
Thanks.
That mean if I don't get any income as an independent contractor, I won't be able to deduct my expenses?
If you do not have a business and do not have Schedule C to report expenses on then, sorry, you have no place to deduct ongoing or renewed certification expenses. That will simply be a personal expense.
Because I have to pay licenses and other continue education expenses, can I just report making say, $200 and filed a form C ?
“can I just report making say, $200”
Are you implying that you would just make up income to be able to deduct expenses? That would be fraud.
Understood! That is illegal. what if I made $500 and reported $1,000?
Thanks
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