I started taking care of my grandparents last month and I get a check weekly from my uncle who is the power of attorney. And I have no idea how to file my taxes. Am I considered self-employed? I heard that it is best to file my taxes quarterly if I am self-employed, is this true? What information should I keep on file, and what tax paperwork do I need? I'm so lost!
Thank you for your help.
It is best to ask your uncle first how he intends to handle the paperwork. That should help to clear any confusion about what to do.
I was an independent contractor at one time. I didn't receive a 1099 when I worked, so I was totally responsible for all my own records. I submitted the estimated taxes quarterly, since my tax was more than $500 a quarter. If you follow the instructions on the ES form, it should be pretty simple.
You'll also need to look into estimated taxes for your state to make sure you won't get behind there and be penalized. Sometimes the tax amount is so low that you can pay at the end of the year, but it's risky to assume it is so.