Welcome to the MDTAXES Message Board

The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals.  Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.

Please check out our other Message Boards available at www.FindAGoodCPA.com.

Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.

Original MDTAXES Forum
Start a New Topic 
Author
Comment
Some 1099 questions... :)

I thought I posted this question a week ago, but I couldn't figure out where I posted it (or if it was posted).

Some facts:
1.) I am getting ready to file for 2015 tax.
2.) I want to file it on my own (but not sure where to start or how)
3.) I just completed residency this year in 2015 in New York
4.) I have moved to Texas
5.) I started working as an independent contractor (locum tenen) a month ago (November 2015) and by the end of 2015 I will have worked at 3 different locations, but with 2 different agencies ALL ONLY IN TEXAS

My questions
1.) Do I file for both W2 and 1099? (I would think so, but just wanted to confirm)
2.) Is it possible to file for my 2015 tax via Turbotax for both W2 and 1099 at the same time? (I have been been using Turbotax when I was employed as a resident physician). Is there something else other than Turbotax for the 1099-ers?
3.) When do I start filing for tax? I hear that for an independent contractor, we file for tax quarterly but I'm not sure when the deadlines are and if the deadline is the same for every IC since I just started working about a month ago as an IC.
4.) How do I approach this if I was an employee in NY earlier in the year and as a 1099-er now in Texas (basically in different states) for both federal and state taxes.
5.) Any suggestions/advice? I have been keeping track of all my receipts and expenses so I figured I can file for it on my own if I know how to approach this head on.
6.) What part of health expenses am I allowed to deduct? (copays? contact lens/prescription glasses? only premiums that I pay out of pocket? do dental costs count?)

I have some time now, so would like to start getting everything together while I can (because I will be working 336 hours in January and 448 hours in February and March each) and may not have the time to get my tax in order in time.

Thank you for your time. :)

Zip Code: 78744

Re: Some 1099 questions... :)

Hello Khaly!

Great questions! See below for answers!


1.) Do I file for both W2 and 1099? (I would think so, but just wanted to confirm)

You will file one tax return with all of your income. Your W-2 income and your 1099 income which will be reported on Schedule C. You will report your 1099 income and any ordinary & necessary business expenses on Schedule C. Here you will arrive at your taxable self employment income of which you will pay self employment tax on.

2.) Is it possible to file for my 2015 tax via Turbotax for both W2 and 1099 at the same time? (I have been been using Turbotax when I was employed as a resident physician). Is there something else other than Turbotax for the 1099-ers?

Turbo tax is capable of handling reporting your W-2 income as well as your self employment income.

3.) When do I start filing for tax? I hear that for an independent contractor, we file for tax quarterly but I'm not sure when the deadlines are and if the deadline is the same for every IC since I just started working about a month ago as an IC.

The tax return deadline is same April 15. The quarterly estimated tax payments are due April 15, June 15, September 15 and January 15.

4.) How do I approach this if I was an employee in NY earlier in the year and as a 1099-er now in Texas (basically in different states) for both federal and state taxes.

You would file your Federal return, NY return and a Texas return.

5.) Any suggestions/advice? I have been keeping track of all my receipts and expenses so I figured I can file for it on my own if I know how to approach this head on.

You can claim your expenses on your Sch C to reduce your taxable income. Some deductions may include professional license, dues and subscriptions, supplies, insurance, and rent.

6.) What part of health expenses am I allowed to deduct? (copays? contact lens/prescription glasses? only premiums that I pay out of pocket? do dental costs count?)

Self employed Health Insurance premiums can be deducted on the front page of the Form 1040 as an adjustment to your AGI. Copays, contacts, glasses and dental costs can be deducted on your Schedule A as an itemized deduction. If your itemized deductions are not higher than the standard deduction (For 2015 - Single $6,300, MFJ $12,600, HOH $9,250) you may just want to take your standard deduction.


I hope that these answers are helpful!

Good luck in your career!

Amanda

Zip Code: 01876

Re: Some more 1099 questions... :)

Hi, Amanda,

On April 15th, 2016, so both estimated quarterly taxes and tax for the 2015 year is due.

Where do I go to pay the estimated quarterly taxes? Is it also via Turbotax? Online?

For 1099-ers who live in Texas (and do only work in Texas), where do the estimated taxes go towards since it is a no state income tax state? How much of my 1099 income should I save to pay for tax? I'm trying to pay most of my medical school loans off, but I do feel if I don't save money to the side for tax, I will be screwed. The only problem is that I'm not sure how much I should be putting to the side for tax.

Thank you so much once again. :)

Zip Code: 78744