My question is: US-specific
QUESTION: will i receive money back from a nonemployee compensation tax
filing?
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david ingram replies
A non-employee compensation implies that you were self-employed. If tax was
deducted as well, you may or may not get a refund - it would depend upon
what expenses you could claim against the income. You should fill in a
Schedule C with your 1040. Report your gross income and if you have an
expense which was used to earn the non-employee compensation, and can find a
line to "put it" on schedule C, you likely have a deduction.
I say likely, because there is a place there for utilities but if you just
paid standard telephone and light and heat on a 350 square foot studio
apartment, you are not likely to be able to justify a separate room for an
office in the home and will not have a deduction.
On the other hand, if you are renting or own a 2,000 square foot house and
honestly use one half of the space for your home business to earn that
non-employee compensation, you can deduct half or more (maybe you have extra
electronics in your home office) of your utilities.
My clients who have been to my home office will recognize that I use more
than half of the space for the business. For instance at this moment, I
have 4 associates working here and am expecting another one at 7 PM and
another, David Holroyd, returns from Guadalajara, Mexico on February 3rd and
will be sleeping here for 4 1/2 months.
We will be opening another outside office next month because they just will
not fit any more.
Hope this helps.
For Canadians in the same position, you would file a T2124 for a business or
a T2032 for professional services.
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