A friend of mine has a consulting contract for a company we both previously worked for. They have an event coming up he is unable to support and has asked me to fill in for him.

It would be a one day gig and I do not expect to do any other work like this this year, My fee will be $650 as an independant contractor to his company that holds the contract. (he is the only employee)

I know I will have to account for the money come tax time as he will not be doing any withholding. But can someone walk me through what I will need to do and what documentation I will need for the IRS come tax time?
Besides regular income tax, I will also have to pay SS / unemployment?
I should be able to deduct mileage / meals as exspenses correct? Meaning notate mileage and keep any reciepts, anything else?

If this goes well, I may have opportunity to step in and do this once or twice a quarter next year. Would that change anything as far as the questions above?

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Posted by ThatsAFactJack

East Coast

Member since Sep 2012

1549 posts

Posted on 10/9/13 at 2:23 pm to Chris4x4gill2

Have him pay you cash and don't sweat such a small amount.

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Posted by LSURussian

Member since Feb 2005

126969 posts

Posted on 10/9/13 at 2:30 pm to Chris4x4gill2

quote:
what documentation I will need for the IRS come tax time?

If your friend follows proper procedure, he will issue you a 1099-Misc in January and you will claim that income on an 1040, Schedule C as self-employment income when you file your 1040 next year. He will send a copy of the 1099-Misc to the IRS and they will look for you to claim the income on your tax return.

You will be responsible for paying both the employee and employer share of payroll taxes in addition to income taxes on the $650.

On the mileage and meals questions, wait for Poodlebrain to teach us.

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