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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I have a tax question about how account for travel while

Customer Question

I have a tax question about how account for travel while completing projects as and independent v
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: independent contractor
JA: Is there anything else important you think the Accountant should know?
Customer: i work full time for a copier company as a technical support person. I started taking on projects as an independent contractor repairing installing upgrading computers registers and general electronic equipment. Can I write off the mileage and tools etc. for these projects? Is there any specific would I need to account for the income and expenses for these projects?
Submitted: 20 days ago.
Category: Tax
Expert:  emc011075 replied 20 days ago.

Hi. My name is ***** ***** I will be happy to help you.

Income and expenses of an independent contractor are reported on Schedule C and the net profit is subject to self-employment tax as well as regular income tax.

When it comes to car expenses you have a choice between standard mileage deduction (about 55c per mile) or actual expenses.

Expert:  emc011075 replied 20 days ago.

Here's schedule C: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

and instructions: https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

You will also need Schedule SE if you claim a profit: https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

You can write off all necessary expenses associated with generating self-employment income. If schedule C does not have a specific line, use the "other expenses" section.

Any questions?

Customer: replied 20 days ago.
Ok I need to know if I can define myself as a contractor/subcontractor. I need to know how to treat that on my taxes. Im not familiar with schedule C but will I need to have had special withholding and or insurance etc to define myself as a contractor and write off expenses and claim the income?
Expert:  emc011075 replied 20 days ago.

Every time you are getting paid for performing services to others (other than your employer) you are considered to be working for yourself as self-employed or independent contractor. A babysitter working for several families is independent contractor, a freelancer for newspaper is independent contractor, a translator, consultant, basically everybody who sell his or her services for a compensation is a contractor. Virtually everybody who does not take orders from an employer is an contractor. For some contractors a license is essentials (traveling nurse or plumber for instance) and some does not need any license. It depends on industry standards.

Expert:  emc011075 replied 20 days ago.

Make sense? Independent contractor is not a title or something you need to apply for. It is a classification, like employee or shareholder.