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1099

I am not firmilar with the 1099, We have just moved to a diffrent state and my fiance was having a hard time finding a job and the only job that he found was paying a 1099. How can we go about paying our tax money so well get money back at the end of the year? If nots even possiable. HELP. I tried looking up information on line but most of it was giving me the 1099 forms from turbo tax. I really dont want to have to pay the taxes at the end of the year as it is nice to get a big check.. If any one knows anything about this please tell me anything you might know.. Thank you

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Anonymous

Asked by Anonymous at 11:16 AM on Mar. 15, 2010 in Money & Work

Answers (7)
  • My hubby does 1099.A big help is mileage. When my hubby goes to work he writes down the mileage and when we file our taxes here in Indiana we get 10 cents per mile I belive. Whatever we get for it the mileage always helps us and we always get a big check every year.
    rochellecole

    Answer by rochellecole at 11:21 AM on Mar. 15, 2010

  • With a 1099 you get screwed. First of all you better make damn sure that he is indeed an independent contractor and that who ever is paying him is not just doing it to get out of paying taxes. To be considered an independent contractor he has to be able to pick his own jobs (have more than one client), hours, and use his own supplies. You can check out the IRS info for the exact qualifications. Then you have to pay for your own taxes on it. And that adds up fast. If you get caught getting a 1099 and your not a IC then both you and your employer will be in IRS hell.

    Anonymous

    Answer by Anonymous at 11:28 AM on Mar. 15, 2010

  • Im the poster. I will have to write that down.. Im just trying to find an easier way so we dont have to keep track of money to pay back the state at the end of the year. He had thought maybe there was a thing where we can set up with the state to were we pay the taxes monthly. Like I had said i dont know much about this whole thing..
    Anonymous

    Answer by Anonymous at 11:31 AM on Mar. 15, 2010

  • from what I've been able to figure out (after getting 1099's for the past 2 years, from DH's second job) approximately 25% of your income from a 1099 is the amount of taxes you will need to pay. If he makes $1,000 on the 1099, you will need to pay $250 (it evens out a little with whatever credits you receive). This is because you are paying what is called "self employment tax" so it would be much better if you can get off the 1099.
    Anonymous

    Answer by Anonymous at 11:49 AM on Mar. 15, 2010

  • 11:28 AM on Mar. 15, 2010 by: Anonymous:, Thank you for that information. I dont think he is an independant contractor as he is working for a tree company. UGGG I was worried about this..
    Anonymous

    Answer by Anonymous at 11:50 AM on Mar. 15, 2010

  • If he gets a 1099 and not a W-2, he's an independent contractor in the eyes of the people he's working for. It is up to him to pay in his taxes. And, he should only be paying in enough so you DON'T get a refund.....but just break even. Much better to have the use of the money during the year and not give the government a tax free loan. Get a savings account for the difference if you think of it like forced savings.
    halfpint_ny

    Answer by halfpint_ny at 8:37 PM on Mar. 15, 2010

  • If you accept a position with a 1099, you need to make quarterly estimated tax payments.

    If you are going to someone's office and doing their work, you are not a contractor, you are an employee, and must be paid a (w-2) salary
    rkoloms

    Answer by rkoloms at 5:51 PM on Mar. 16, 2010

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