Has anyone here just done 1099?

[manlymatt83]

Anyone here ever just done 1099? No W2? I may be doing this soon - switching from a W2'd contractor to a 1099 contractor as they remove the middleman.

I know you pay taxes yourself... is it much different?

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Hmmm... a tax question, why not ask in the Official tax thread?

Zim Hosein

Off Topic Moderator.

 

[Ns1]

Originally posted by: manlymatt83
Anyone here ever just done 1099? No W2? I may be doing this soon - switching from a W2'd contractor to a 1099 contractor as they remove the middleman.

I know you pay taxes yourself... is it much different?

Get ready to kiss another 7.65% good bye. And no health insurance blows too.

 

[Demo24]

Can be difficult depending on what software you use. I had to do that last year and it was a giant pain in the ass. I also went from getting a refund to having to pay a ton back to the government. You better be prepared for that cause the number can surprise you!

I hate 1099's! :|

 

[Denithor]

Helped my mom the last two years - only 1099 no w2. She's been out on workman's comp since some dumbass left a food tray on the floor where she worked as a nurse. One knee replacement later she still hasn't fully recovered.

 

[NFS4]

Originally posted by: manlymatt83
Anyone here ever just done 1099? No W2? I may be doing this soon - switching from a W2'd contractor to a 1099 contractor as they remove the middleman.

I know you pay taxes yourself... is it much different?

Yeah, you get raped in the ass in April if you don't make estimated tax payments during the year.

 

[compuwiz1]

Welcome to filing quarterly.

 

[spidey07]

Originally posted by: compuwiz1
Welcome to filing quarterly.

Plus the added SS taxes. OP make sure you're making about 50% more to cover what you were making W2, that's a rough apples to apples comparison.

 

[OCGuy]

Originally posted by: spidey07

Originally posted by: compuwiz1
Welcome to filing quarterly.

Plus the added SS taxes. OP make sure you're making about 50% more to cover what you were making W2, that's a rough apples to apples comparison.

Im 1099 and write off Entertainment, Meals, Gas, depreciation of my car, all of my computer equipment, my dirtbike, etc.

If you know what you are doing, you will be fine. Seek tax professional help, not OT "pros"

 

[sactoking]

Make sure if you switch from W2 to 1099 that your job description changes. If you do the same thing but get a 1099 instead of a W2, you're still a W2 employee and there are some serious tax implications (mainly for your employer).

 

[Ns1]

Originally posted by: Ocguy31

Originally posted by: spidey07

Originally posted by: compuwiz1
Welcome to filing quarterly.

Plus the added SS taxes. OP make sure you're making about 50% more to cover what you were making W2, that's a rough apples to apples comparison.

Im 1099 and write off Entertainment, Meals, Gas, depreciation of my car, all of my computer equipment, my dirtbike, etc.

If you know what you are doing, you will be fine. Seek tax professional help, not OT "pros"

Well you can do it legally or you can do it your way.

Sorry, that shit won't pass audit.

According to the IRS, any small business deductions you claim on yourtax return have to be ordinary and necessary.
What does this mean? Well, the IRS (and the tax courts) interpret "ordinary and necessary" to mean "reasonable and customary."

If your expenses pass the above tests, then disregard my comments.

 

[mxyzptlk]

Save your receipts.

 

[EvilYoda]

Originally posted by: mxyzptlk
Save your receipts.

QFT.

You know what I used to do and we're obviously all contractors. Definitely file quarterly (makes it less of a hit in the end anyway) and talk to someone that knows what he/she is doing as they can help you save a lot of money.

 

[Fenixgoon]

i did a 1099 for my job and barely paid any taxes at all. then again, my income wasn't very much either.

 

[OCGuy]

Originally posted by: Ns1

Originally posted by: Ocguy31

Originally posted by: spidey07

Originally posted by: compuwiz1
Welcome to filing quarterly.

Plus the added SS taxes. OP make sure you're making about 50% more to cover what you were making W2, that's a rough apples to apples comparison.

Im 1099 and write off Entertainment, Meals, Gas, depreciation of my car, all of my computer equipment, my dirtbike, etc.

If you know what you are doing, you will be fine. Seek tax professional help, not OT "pros"

Well you can do it legally or you can do it your way.

Sorry, that shit won't pass audit.

According to the IRS, any small business deductions you claim on yourtax return have to be ordinary and necessary.
What does this mean? Well, the IRS (and the tax courts) interpret "ordinary and necessary" to mean "reasonable and customary."

If your expenses pass the above tests, then disregard my comments.

They do.

One of the top audit brackets is young people who are self-employed. I know there is a good chance I could be sitting at the desk at the IRS, so I make sure my records are clean.

 

[akshatp]

I file a 1099 every year in addition to my W2 for work I do on the side. Its usually around $3000 or so, but I lose at least 1/3 of that to tax when I file.

 

[alkemyst]

Originally posted by: Ns1

Originally posted by: manlymatt83
Anyone here ever just done 1099? No W2? I may be doing this soon - switching from a W2'd contractor to a 1099 contractor as they remove the middleman.

I know you pay taxes yourself... is it much different?

Get ready to kiss another 7.65% good bye. And no health insurance blows too.

get ready to open up a whole new door of write offs though.

If you are young you can get affordable health insurance through the big carriers. I went self-employed in my mid-late 20's and my private insurance was cheaper with the same company I had group coverage under.

I had a better policy as well (lower copays and higher limits/less % out of pocket).

I think it was $125 a month back in 1998 or so with BC/BS