I am an Independent Contractor and face a few things this year.
1. I moved from Utah to NM in Sept. Would this negatively affect me?
2. I had significant medical expenses that took all my savings. Can this be deducted, or will it help me?
3. I missed 20 days of work due to my son and myself having COVID at the beginning of the year. Will this help me at all?
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Okay, let's do this in order:
1. I moved from Utah to NM in Sept. Would this negatively affect me?
It will in the sense that you will have to file a part year return for each state. While you report your income and expenses on the Schedule C of the Form 1040, you will need to keep track of the income and expenses that you had in the two states. You will report only the income and expenses that are attributable to each state.
2. I had significant medical expenses that took all my savings. Can this be deducted, or will it help me?
Medical expenses are deducted on Schedule A of the Form 1040. However, for medical expenses to be deductible they must exceed 10% of your Adjusted Gross Income, and then that amount and other deductible expenses must exceed the Standard Deduction.
3. I missed 20 days of work due to my son and myself having COVID at the beginning of the year. Will this help me at all?
There is no benefit. You missed work. If you were paid during the absence that is reported as regular income. If not, you have no income to report.
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