Taxes Related To Birddog Fees!?
I'm not sure if this is FAQ, but here goes. What type of money (tax wise) is the fee that is earned from completing a birddog deal? In other words, how is this money claimed for tax purposes?[ Edited by Cincinnati on Date 07/03/2003 ]
You have to claim it as Self Employed business income. This is pretty much taxed like regular employee taxes except there are a few minor differences.
first, you know the social security and medicare taxes? Those will be double since an employer usually pays half of those for you. You now have to pay both halves for yourself.
Also, you know how when you were an employee (remember that - ick!!) how money came out of every check? Same sort of thing has to happen now with paying estimated taxes so that you won't get penalties later.
Plus, remember to record every single expense you incurred while being a bird doggie. Long distance phone bills? Travel expenses? Advertising? Coffe you bought during a business meeting? You can deduct all that from the gross receipts you bring in.
E-mail me if you need more details, sorry if this was too much. I'm sure someone needed this info.