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I worked under contract for Texas on a summer project. The money was good, but I don't know what taxes are like. They are supposed to send me a form statement that I add to my tax form. Since the project was finished at the last of August (ahead of schedule) I have worked myself out of a job. I have not worked since August. So will my contract and my unemployment balance out so that I don't have any taxes to pay or get a great refund? Anybody have any info on this? Thanks, silverhair75703
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Unfortunately I can only offer a small measure of help based on the information supplied. For starters, I don't believe Texas has a state income tax. As for federal we'll need some additional detail to properly answer your questions. What type of form statement will you receive? Sounds as though you may be receiving a 1099 as opposed to a W-2. Taxable earnings and unemployment received don't "balance out", they are added together, and increase taxable income. I have no idea about the prospects of your receiving a refund without knowing filing status, exemption amounts, withholdings, etc.
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So will my contract and my unemployment balance out so that I don't have any taxes to pay or get a great refund?

There's no way to know this without going through all of your income and deductions. I suspect you don't want to do that on a public forum. But both your contract work and your unemployment are taxable income. So there is no "balancing out" here.

--Peter
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MarleysGhost: "Unfortunately I can only offer a small measure of help based on the information supplied. For starters, I don't believe Texas has a state income tax."

Texas does not have a state income tax for individuals. The franchise tax for (certain) entities was revised several years ago so that it is potentially an income tax for corporations and LLCs.

From my notes, LLCs and corporations pay Texas state franchise tax - generally 4.5% of Earned Income or 1/4% of Capital; not vouching that rates are current. <grin>

Regards, JAFO






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