topic New to independent contracting, I know about saving money for taxes but was curious how this would work. When I file, will what I owe be deducted from my return? in After you file

New to independent contracting, I know about saving money for taxes but was curious how this would work. When I file, will what I owe be deducted from my return?

joshman219 — Thu, 02 Jan 2020 14:03:52 GMT

Re: New to independent contracting, I know about saving money for taxes but was curious how this would work. When I file, will what I owe be deducted from my return?

xmasbaby0 — Thu, 02 Jan 2020 14:26:19 GMT

Not sure how "new" you are are to independent contracting. If you are not having any tax withheld by an employer, then when you file a tax return you are going to OWE self-employment tax for Social Security and Medicare, as well as ordinary income tax. Tax refunds come from having more than enough tax withheld and/or refundable credits---which we do not know if you are eligible to receive.

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

Re: New to independent contracting, I know about saving money for taxes but was curious how this would work. When I file, will what I owe be deducted from my return?

joshman219 — Thu, 02 Jan 2020 15:11:41 GMT

Yea I tried to explain more but the original post was character limited. I receive a child tax credit and a pretty substantial refund, but I wasn't sure if what I owe for federal taxes are deducted from my total refund when I file or do I have to pay them separately. I did this last year and didn't receive anything from the IRS saying I owed or anything. Don't have family or anyone to ask, hence this question. Gotta learn somehow, Thanks for the reply

Re: New to independent contracting, I know about saving money for taxes but was curious how this would work. When I file, will what I owe be deducted from my return?

DoninGA — Thu, 02 Jan 2020 15:20:46 GMT

@joshman219

Any Self Employment taxes owed are included in your total tax liability. If your total tax payments and your refundable tax credits are greater than your total tax liability you will receive a tax refund for the overpayment.

If your total tax liability is greater than your total tax payments and your refundable tax credits you will have taxes owed.