Do I have to pay taxes on contract labor jobs?

Answer by  Chaneygirl (1755)

Yes. If you are the one doing the work and receiving the money, you are self employed and will need to file schedule C with your taxes and pay self employment taxes in addition to income taxes. Keep track of your expenses associated with this income to deduct.

Answer by  OU (135)

If you are working contract labor, you are considered self employed and subject to self employment tax. this means you have to pay your own FICA and the employer portion.

Answer by  Kdm (180)

That depends on your expenses. You should receive a 1099 MISC, although you may not. Either way a Schedule C should be filed. How much tax you pay depends on your expenses. It is quite possible that there would be a loss. Which would reduce any other income.

Answer by  suja (5)

under VAT every dealer executing works contract shall pay taxes on the value of goods, provided if the accounts are not maintained to determine correct value of goods then the rate may be 12. 5% on the total consideration. If it is for government then rate is 4%.