IRS Form 1099

[Keith]

What exemptions can I claim as an independent contractor?

[barr...@gmail.com]

Exemptions are attached to individuals claimed on your return. The
personal exemption for 2005 tax return is $3300. What you are probably
asking about is deductions. Deductions would be the expenses you
incurred generating the 1099 income. This is not a question that can
be answered quickly. The best advice I can give you in this forum is
that everything you spend to help you generate the income is deductable
in some form or fashion. I would suggest you find a quality tax person
in your area to assist you. A quality tax person will be a CPA or
Enrolled Agent. Ask other business people in your area who they use
and what they like about the person they use as well as any complaints
they may have. Not all CPA's are the same and Enrolled Agents are
excellent qualified tax preparers. I am a CPA and I can tell you that
some CPA's are overly concerned with compliance and not aggressive
about helping you reduce your taxes. What you have to determine is how
aggressive do you want your preparer and then find the person that fits
your attitude. Some people prefer to be very conservative in which
case a compliance person is what one should seek. I personally take
great pride and pleasure in squeezing every deduction possible in order
to minimize taxes for the taxpayer. That is not to say that I throw
compliance out the window because it is important to comply too.
Remember, you are responsible for anything on your return regardless of
who prepares it. That said, I interpret any grey area in favor of the
taxpayer unless the taxpayer ask me to do otherwise. I also try and
educate and organize my clients so they get every deduction they are
legally allowed. If that is the kind of preparer you want then ask any
potential preparer what they do and how they believe they can help you.
The answer you want to hear depends on what you want from a preparer.
You can find more information at www.tmicpa.com. Good luck