JoeF an other experienced gurus

Y

yash

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JoeF an other experienced gurus

My spouse and I after lots of hic ups in the gc process have finally obtained it. My spouse now wants to work as an independent contractor. Please let me know the following

1) How is it different from working as an employee ( W2)
2) Do we have to obtain a federal Tax ID number for working as self employed( I am assuming self employed is the right term to use here). In other words do we have to form an Inc ( just for one employee) or my spouse can work as an independent contractor
3) if my spouse receives 1099 after being self employed , can we still file our taxes jointly( I receive W2 from my employer.)

Also any pointers to web site where we can obtain more info will be greatly appreciated
 
Working as a contractor

After my wife got her work permit during the I-485 stage, she started working as a contractor in my company. Now that we have our GC, she has continued to work as an independent contractor.

1. In many ways working as a contractor is a good deal particularly if there is another bread winner at home. What JoeF says is right. But remember that you still have to pay fed and state income taxes along with soc sec and medicare if it applies in your case.

2. You don\'t need a federal id. The soc sec id is enough.

3. Yes you can file jointly as we do. I think we file schedule C. If you don\'t have a lot of complicated deductions towards business expenses, doing schedule C is pretty straight forward. We don\'t have a CPA helping us, but probably we should hire one.
 
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I\'ve been doing taxes manually + turbotax for a while. This year I finally hired a tax consultant and I am sleeping a lot better. I am a full time employee, but of course life made sure there are some complications :)
 
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Can you please direct to me some website where I can go through all the info in detail
Thankyou for all your replies.
 
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