US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

manderson: Aug 12, 2005; Human Extraordinaire

Another self employment/1040 contractor question...

I've been having a pretty hard time researching all of this, as I'm rather new to it all (just finished my first full year as sole proprietor/independent contractor). Hoping someone can lend me some advice.

I'm currently contracting for a Canadian based company (they are physically located in Canada and have no US space) and am a US citizen. I am paid in US$s once a month. I have a sole proprietorship set up for myself and I have a set limit of hours/dollars I can bill for during a year.

What I'm curious about is the deductions. I'm not married, I don't own a house, I don't have any dependents, and I really have very little business expense (Software company and nearly everything is online). I've calculated square footage of my office space and a percentage of my bills/rent (including the insurance I pay for myself). Aside from IRA contributions, what else can I rely on for deductions? I just feel like I'm being bent over and raped in the position I'm in, but maybe I'm just being naive and need to do more research... which really blows because there is so much to sift through. Even being pointed in the right direction would help a great deal! Thanks goons.

manderson fucked around with this message at 19:13 on Mar 30, 2011

# ¿ Mar 30, 2011 19:11

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# ¿ May 2, 2024 03:14

manderson: Aug 12, 2005; Human Extraordinaire

Captain Beans posted:

At least it sounds like you really are a independent contractor instead of people who just get issued a 1099misc because their company wants to cheap out on their employee taxes.

Your situation isn't too different than someone geting a w2 that can't itemize. IRA, student loan interest, few other things are about all your are gonna get, plus you get a little bit of business expense.

You said this was your first year getting paid as an independent contractor, I hope you have been making your estimated payments to the IRS every 3 months or you are going to owe penalties for not sending in money durring the year. Tax is a pay as you go system and when doing contractor you gotta take care of it yourself.

Yes, I've paid all of the estimated payments throughout the year... and from what I'm gathering, I'm hosed unless I have a school loan or some other sort of loan floating around. That or I go get some chick pregnant and marry her real quick.

Is there anything I can do about the fact that I am being paid from a Canadian company? I definitely don't want to move there, thats for sure.

# ¿ Mar 31, 2011 15:15

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.