Can I file as an independent?

Can I file two different sets of taxes? (independent contractor)?

• I recently did some work as independent contractor working as roadside assistance. Before then I worked a normal job that withheld taxes from my paychecks. I just filed my taxes for my normal job the same way I do every year, except i had completely forgotten about my other work as an independent contractor. Well today they sent my tax information for my independent contractor work and I'm at a loss on how to file the taxes. Is it possible to file twice for two different jobs? I'm not even sure how to file taxes for independent contracting work. Any and all replies greatly appreciated.

• Answer:

  You will need to file amended tax return Form 1040X. You will also complete schedule C or C-EZ to report income as independent contractor. Then complete schedule SE (Form 1040) to compute self employment tax. Pay the tax due. 1099-misc (nonemployee compensation) income: You are self employed or independent contractor. You must file your tax return if your self employed income is $400 or more. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). For this you will use schedule SE (Form 1040). With 1099-misc you will end up paying about 7.2% more taxes as compared to W-2 employee. The benefit is that with 1099-misc you can deduct your business related expenses on schedule C or C-EZ whereas a W-2 employee you can deduct it only as itemized deduction subject to 2% AGI limit.