Federal And Nc State Tax For Contract Labor

[Rhinffrew]

s About Taxes)/Federal and NC state tax for contract labor Advertisement Expert: Glenn D Schnabel - 8/9/2008 I work contract labor for several places.  How do I pay the federal tax and NC state tax on the money I make.  Are there any other taxes I would need to pay?

ANSWER: Linda,

1)How do I pay the federal tax and NC state tax on the money I make.  Are there any other taxes I would need to pay?

Thank you for your question. As a self employed person you would be required to file and pay estimated tax payments.

Federal would be on Form 1040 ES and NC 40  are due each quarter.

4/15/08

6/15/08

9/15/08

1/15/09

As a self employed person(Form 1040 Schedule C) you would pay regular income tax plus self employment taxes(15.3 % of net schedule C) to IRS on from 1040 ES

You would also pay an estimated tax to NC based upon the federal tax estimated without the self employment tax)

Figure out your income and deductions before you compute your Net Schedule C. Deductions such as cell phone usage, supplies, auto expenses(Standard mileage or actual bus use percentage actual expenses.), tolls and parking.

Hope this is helpful

---------- FOLLOW-UP ----------

I,m still not sure when to pay my self employment taxes.  I assume this is federal only?  Thanks so much for your time.  Linda Shook

[Therron]

Linda,

Thank you for your follow up question.

1)I'm still not sure when to pay my self employment taxes.  I assume this is federal only?

You will make estimated tax payments to the US Treasury for the portion of the federal income tax plus the self employment tax using IRS form 1040ES. You file a coupon with your payment. There are four quarterly payments to be made(4/15/08. 6/15/08. 9/15/08. and 1/15/2009)

NC has their won forms to pay estimated tax payments. The state does not charge the self employment tax component.

Hope this provides more clarity.