computer contractor 1099
Submitted by Anonymous on Thu, 2008-01-17 10:26.
I'm a 1099 employee. As a Graphic Designer, what taxes do I have to pay? Can I deduct for computer cost, health insurance, travel to clients?
»
- Add new comment
- 372 reads
Business Expenses
IRS Publication 535, Business Expenses, covers this in detail.
Generally, yes you can deduct the cost for a computer purchased for business use using the Section 179 election. Computer software is also eligible for the 179 election on your federal return. But check your state, in CA for instance software must be depreciated & is not eligible for 179 treatment.
If you work out of your home, you can deduct the travel to your clients at 48.5 cents/mile for 2007, 50.5 cents/mile for 2008.
Health insurance is not deducted directly on Schedule C. It is an adjustment to income reported on line 29, self-employed health insurance deduction. So you pay SE tax on that but not income tax.
Other expenses I can think of that you might have are paper & supplies, business insurance, internet connection fees, books, accounting services and the portion of any tax preparation fees associated with preparation of your Schedule C & related forms (but not the fees associated with the personal portion of your return).
Business meals are only 50% deductible.
Good Luck!
L:)