"Cool Guy" <helalrajshahi[at]gmail.com> wrote:

- quote -

That may be true but the IRS feeds the big fish with the
little ones. All kidding aside if you received a 1099 then
most of us will agree that you should file a Schedule C.

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Thanks for the response. That contract job was one time 4
months job. I have no plan or time to continue that kind of
contract as I am a W2 employee now and thats where I wanna
be until I loose this job I heard people say if this is
an one time thing, you don't have to pay self employment
tax. Is this correct? Does it apply to me?

I really don't want to hire anybody to do this as I earned
only 16000 dollar and that was it. I didn't have a home
office dedicated to this, but bought a laptop for this. I
have mileage and some office supplies. That was it.

Regardless, I am planning to file Schedule C, and SE. To be
on the safe side, may be thats what I should do to avoid an
audit. Even though, one of my friend told me "Hell no, IRS
is not going to come after you for couple thousands dollar,
they have big fish to fry ".

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Cool Guy wrote:

- quote -

A. Contractors ARE self-employed. You were treated as a
sub-contractor.

If you fee this was wrong, see IRS form SS-8 and answer the
questions thereon.

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- quote -

As a contractor you are self-employed. Even though you don't
own a company, you are in business. (You are what's known as
a sole proprietor.) You should enter the 1099-MISC in the
Business Income section of the TurboTax interview. You do
not have to own a company or have an employer ID number.

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"Cool Guy" <helalrajshahi[at]gmail.com> wrote:

- quote -

That's the one

<snip
- quote -

If you're going to continue to do contract work, invest in a
session with an accountant, who can advise you on what
expenses you can deduct, what records to keep, and estimated
tax requirements.

--
Phil Marti
Clarksburg, MD

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I was a working as a contractor for an employer A working
for Company B whereas company A got this contract from B and
A asked me to start working with $x/hour for limited time in
the manner of contract work. I don't own any company. I was
getting paycheck from company A. A didn't withdraw any kind
of taxes from my paycheck. I worked for 4/5 months during
2004. That employer send me a 1099 MISC with the amount
written as "Non Employee Compensation" at the beginning of
2005. The amount is written $16XXX as non employee
compensation on Box 7.

I was filing my tax return along with other W2 what I have
using free Turbo Tax software online. It is asking me
"choose the source of non employee compensation income
a) self employed Business Income
b) farm Income
c) Wage Income

My question is which one is appropriate for me? If I pick
wage, I pay less tax, if I pick self employed I pay more. I
also can't define myself as self employed as I don't own any
company or has any employer Identification number or
anything.

Could you please guide me thru little bit what I should do?
If you can shed some light with respect to TurboTax
software, it will be a plus as I am using this.

Can I make mileage, car, repair cost deductible as I used
them during that contract period. If Yes, how??

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