Newbie, general transcription, taxes?

[Maria in Minnesota]

Hi friendly group! I can tell this is a great group - I am brand new and looking into general transcribing to earn some money. I'm a former administrative assistant and office manger with a degree in English, I think it will be right up my alley. Here's my question: As a freelance transcriptionist worker, am I then self employed and need to file taxes as such? I know very little about it, but don't you have to pay both the employer and employee amounts for social security and file quarterly tax returns? Guidance from those of you alreading doing it would be great - and any advice at all for a newbie! Thx! Maria

[Sadie1Lady1]

Unless you are working for a company as an employee, then you are considered an IC or independent contractor and you are responsible for your own taxes.

Whether you pay them quarterly or not depends on your circumstances and if you would get money back at the end of the year based on whether you're married or not and have kids, itemized deductions, if you own your own home, etc. If you'd have to pay at the end of they year, then yes, you would definitely have to make quarterly payments or risk being penalized by the IRS.

Chances are this wouldn't be your sole income and you wouldn't make enough the first year to have to pay quarterly taxes but an accountant can help you determine that.

I don't file quarterly because my husband is an employee and I also work part time outside the home, so we both pay in taxes throughout the year and it works out for us.

Hope that helps.

[Itsjusmeli]

I fill out a Schedule C every year as an independent contractor. I don't pay quarterly taxes ahead. But I still have two dependents on my return. Remember to keep track of all your expenses, so you can take them off your taxes.

[Sonoma]

Yes, you do pay the entire amount for Social Security. Be sure to factor that in when you decide whether or not you need to pay quarterly withholding (which will cover both your income tax liability and SS contribution). It adds up! Good luck to you in your new business!