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Quick question- I am a sole proprietor and just hired an…

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Quick question- I am...

Quick question- I am a sole proprietor and just hired an independent contractor. What tax form does she need to file right away and do I need to file any tax forms right away?

Accountant's Assistant: Because laws vary from state to state, can you tell me where the business is located?

Washington State

Accountant's Assistant: Has anything been filed or reported?

No not yet. She just started

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

No thank you

Submitted: 1 month ago.Category: Tax
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3/12/2018
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 1 month ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,164
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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Customer reply replied 1 month ago
Thank you.
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 1 month ago

When you hire an independent contractor, it is very good practice to always have the contractor complete Form W9, which I have placed a link to below.

https://www.irs.gov/pub/irs-pdf/fw9.pdf

The W9 provides you the independent contractors Tax Identification Number, which you will need if you pay the contractor $600 or more.

This would be the only form you need for an independent contractor.

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

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Customer reply replied 1 month ago
Thank you! So I just file taxes as normal when my quarterly tax times roll around? I imagine there is a section where I add her income that I have paid
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 1 month ago

On your schedule C you will deduct the expenses you pay the independent contractor, Line 11 "contract labor."

You do not have to include her payments into your quarterly tax payments. In fact you would deduct her payments from your income.

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Customer reply replied 1 month ago
Fantastic. Thank you for your help!
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 1 month ago

You're welcome.

If you do have any additional questions please let me know. --When you have no further questions please take moment to accept the answer by clicking on three stars or more.

Have a great day.

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