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Will being an independent contractor hurt us much this year?
Hi,
I got a job this year which I am considered an independent contractor. I will only have made about 5,000 from it at the end of the year. My hubby is an employee, and his earnings will be about 24,000 with about 2,600 withheld for federal and 426 withheld for state. We have 3 children, 2 in school with the oldest being 14. I just curious how bad my independent contractor job will hurt us. Thank you
2 Answers
- JudyLv 76 years agoFavorite Answer
Will cut your refund by about $1500 for federal, some for state also, but you should still get a refund for federal and probably for state also.
- Max HooplaLv 76 years ago
Whenever I see a question like this my clueless person alarm goes off. Who considers you an independent contractor? You or your employer. If you are treated like an employee on the job (you have regular ours, work at the employer's place of business, have to follow orders) you are an employee and should be treated that way on payday. If I have that right contact your states unemployment tax agency and ask them to investigate. If you can get the job done however you wish as long as it is done on time, you may be an independent contractor and in rough numbers add the pay in the same as wages and add 14% for both halves of Social Security and Medicare tax.
