Consultant and social security taxes ?????

I'm in your situation and I've found that there is a cap for self-employed people whereby if you make a net of over $75,000 per year, you are better off incorporating. Otherwise, you do not have to pay social security and medicare but then again when you retire, you will not receive any either.

Your best bet is to find a good tax accountant. Check with the Better Business Bureau in your city and talk to other self-employed people about who they use. Ask if the person will be there if you get audited. My new guy will go in my place if I ever get audited. Also remember that if your business is in your home you can claim alot of deductins that people with a j-o-b can't. And yes, the accountant is a tax write-off too.

You're a self-employed person or independent contractor if you aren't paid a salary by someone and have taxes, etc. taken out of your pay. Be sure to take this into consideration when putting aside money to pay your taxes. I'm glad I'm not an independent contractor any more at this stage in my life (almost to retirement). It's nice to have my taxes taken out and the employer paying his half of my FICA taxes (I think that's what it is...Social Security, etc.).

you are considered self-employed if you are sent a 1099. K1 look familiar, that is self-employed. Do you have a business liscence? DBA, LLC? Do you sub-contract? Are the people paying you going to report the money as an expense? Just being a consultant doesn't mean you are self-employed, but my guess would be you are. And yes, taxes are Extremely high. I consider 30 percent of my income to go toward taxes and that includes what i make here if it is more than 400.00 a year. Sorry. I would find out for sure by checking into the above questions. It could make a world of difference on your returns.