help understanding taxes for an independent contract living in Philly but working outside the city (Philadelphia: purchases)

[pat12345]

Hello! My daughter lives in Philadelphia, and recently started a part time job outside the city. The employer is actually incorrectly classifying her as an independent contractor - we have read the IRS regulations on the difference between independent contractors and employees - but we are not hopeful she will change that. So, I am trying to help my daughter understand her tax liabilities and what forms need to be filed, etc.

I would appreciate any help you can give me on this - egad, Philly has an arcane tax system!

1) Does she need some kind of license if she is a independent contractor?
2) I have read about the Net Profits Tax and the Business Income and Receipts Tax - does she need to file and pay these?

Again, my thanks for any help!

[Ms_Christina]

she will get a 1099 Income from her employer instead of a w-2. Make sure she is taking out taxes from each paycheck because the employer is not doing that. No license is needed. she does not file business tax returns.

I lived in NE Philly and worked in Doylestown. I was an "independent contractor" for my boss as well. Advantages of writing off mileage for travel to work sites and equipment purchases was nice.

[pat12345]

Hi! Thanks so much for your answer - what a relief since I was getting really worried reading about the cost of the license, etc. We were so hoping for a simple tax return next April, and thinking that would not happen.... Again, my thanks!