Independent Contractor and taxes ?

[Ladynred]

I live in TN.

I'm working as an Independent Contractor on a 3-month contract (at least its 3 months to start). The company will send me a 1099.

I need to be absolutely sure of what I need to do about taxes. I have publication 334 and the one on the Self Employment taxes. Is 334 all I need ? I'll get my first check this week, and I need to know how to figure out what I need to hold out. I did this type of thing back in 1990, and I remember filing quarterly estimated tax payments. What do I do about Unemployment tax, do I pay FUTA for myself ?? Funny.. I was laid off from my job on 2/1, collecting Unemployment.. then this contract came along 3 weeks ago.

Thanks !!!

 

[loku]

As an independent contractor you are not covered by Unemployment; therefore, you have no Unemployment tax to pay or file.

You are correct in that you will probably have to file quarterly estimated tax payments. Those payments should cover what you owe in income tax, and self-employment tax (FUTA, etc.) All this and most of what you need to know about federal tax is in Publication 334, and Pub 334 has references to other publications for anything you need to know that is not in Pub 334.

You will probably also have to file a quarterly estimate of your state income tax also.

 

[Ladynred]

Thanks for the info, Loku.

Fortunately for me, TN has no state income tax.... at least not yet !
So, that's one less thing for me to worry about.