The Small Business Tax Help Blog

Posts Tagged ‘contractor taxes canada’

Question: Tax Question: U.S resident, self employed working for foreign company?

I live in the U.S (natural citizen) and will work out of my home in the U.S. as an independent contractor working on a project for a company in Canada.

How do I pay taxes? Like normal to the U.S. or do I pay Canadian taxes too? Everything I’ve googled returns things about canadians living and working here.

Any help appreciated.

Answer: Well you are working in the US and the Canadian company should sent you a 1099 or W4 – don’t know how you are compensated at year end. You taxes are due to the US since you reside and work in the US.

Grainger Reports Second Quarter 2010 Earnings Per Share of $1.73, Including $0.08 Contribution from Unusual Item

Grainger today reported results for the second quarter and six months ended June 30, 2010. Â Second quarter sales of $1.8Â billion increased 16 percent versus the 2009 second quarter. Â Both quarters had the same number of selling days . Â Net earnings for the quarter increased 40Â percent to $129 million versus $92 million in 2009. Â Earnings per share increased 43Â percent to $1.73 versus $1 …

Tax Talk – Paul DioGuardi on…” Audit? Why Me?”

Question: As an independent contractor, what can I use as a deduction come taxes next year?

Could I deduct my car payment? Can I deduct any services to my car, such as oil changes or new tires? I know I can definitely deduct the gas/mileage I use while on the job. Do I need to keep track of how many miles I drive each day for my job? Also, should I keep my receipts for gas? Can I deduct the food I buy while on the job? Please, if any of you are aware of even the smallest things that I should be keeping receipts for, please let me know. I am 21 years old, unmarried, and without children. I am working as an independent contractor, just started a few days ago. I will make about $12500 for the next 6 months remaining in 2006. How much should I set aside to pay taxes next year? I will be doing a lot of driving for the job, so do the deductions that come along with driving for the job make a huge difference? I am worried that I will be stuck with a rather large payment next year and just want to be adequately prepared. Thanks in advance for your help.

Answer: Here's a start...

YES... keep track of every mile and wheter it was personal or business. Basically, you can deduct the percentage that is business for all of the maintenance things. Yes keep receipts.

I'm guessing you are single, which means there is a standard deduction of $5000 available. You probably will use the standard rather than the itemized deductions I described above. Do you go to school? Have kids? These create more deductions.

For example: You earn $12500
Subtract $5000 standard deduction
Subtract $3200 personal deduction (everyone gets one)
Approx. Taxable Income: $4300 (the amount you would pay taxes on)

So... 10% tax bracket... you would be liable for $430 for taxes.

Note: I am not a CPA, contact your tax professional! Good luck.

Bayport residents to pay slightly less in property taxes

A small jump in the tax levy, combined with a larger drop in property valuations, should result in a drop in taxes for most Bayport property owners.

Contractor Tax Can a contractor pay less tax?