Need help on how to fill out my taxes online since , although considered an independent contractor, I do not have a business as I am a full time student doing part-time work 2 days a week, as a nonemployee for a small start up.
Please help and thanks.
Are you a dependent of another taxpayer? If so, you will need to indicate that on your return.
You will indicate you are a student in the Personal Information section. You are considered self-employed for your part-time work. You report self-employment income (1099-NEC) on Schedule C. Here are instructions for doing that. You can use your name and your home address for the business set-up information. For tax purposes, you are a business owner; you can deduct expenses related to the income on Schedule C as well.
Thanks for your reply.
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It's mind-boggling to pay $617 in taxes on an independent contractor income for 2022 of less then $4000.
Self-employment tax (SE tax), is the Social Security and Medicare tax paid by self-employed individuals. It is similar to the Federal Insurance Contributions Act (FICA), which is the Social Security and Medicare taxes withheld from an employee’s paycheck.
When you’re self-employed, you are paid the full amount you earn. Nothing is deducted from your check for Social Security and Medicare taxes. Instead, you make estimated tax payments during the year to pay your SE tax and your income tax. If you don’t make estimated tax payments, then you pay these taxes when you file your return.
If you’re self-employed, you can claim a federal deduction for half the SE tax you pay, which can help lower your taxes.