Given the employment situation you have described, the insurance company is treating you as a self employed individual. What that means is that you will be responsible for payment of your own taxes each year, including federal
and state income taxes
, plus the full share of SS and Medicare
You will report your income
from this employment on Schedule C
which is used by self employed people. On that same Schedule C you will report any expenses you had in connection with your employment.
Some of the expenses which you have listed do not pertain directly to your employment. Expenses for job hunting, donations to charities and medical expenses
would all just be part of your itemized deductions
on Schedule A
. You would be allowed to claim these same deductions even if you were employed at a regular job where they withheld taxes from your checks, assuming you have enough deductions to itemize.
For the tax year 2009, the IRS
will allow single taxpayers a standard deduction
of $5,700 and married taxpayers a standard deduction of $11,400. If you have enough deductions which exceed those amounts, then you have the choice of itemizing your deductions on Schedule A. However, expenses which you have in connectin with your self employment are separate deductions. They are not part of your regular itemized deductions.
Expenses that relate directly to your job would be things like mileage, business use of your home, cell phone that you use for business, cost of any business license you must hold, cost of business cards and office supplies you purchase, and things of that nature. These expenses which relate directly to your job would also be listed on Schedule C along with your income, and you would then be liable for tax on the net income
The other deductions for donations and medical expenses and things of that nature would still be claimed on Schedule A if you plan to itemize your deductions rather than take the standard deduction allowed by the IRS.
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Thank you blondy.