1099-Misc Tax Help

[MHSFostermom]

I recently accepted a position doing clerical work from my home in Michigan. The company is treating me as a contractor. I am getting paid with zero withholdings being taken out and at year end they will file a 1099-Misc.

My question is, how do I pay taxes on this income and is it a higher rate than if I were to receive a W-2? Do I need to pay taxes quarterly? Am I considered self-employed? Can I deduct any of my expenses?

Thanks for any info!

 

[Snipes5]

Yes, it is a higher rate, and you are self employed.

Yes, you may need to pay estimated taxes quarterly. Pay a visit to a professional preparer, advice is free, they can help you figure it out.

Take 30% of each check and put it in the bank for tax time, so you don't have any surprises.

Yes, you can claim expenses. Keep track of your mileage, supplies, etc.

Snipes