I worked for a company for a week for a fee of $1000.Ijust got my W2 and it stated I worked independently for them.When I filed my taxes I was charged extra for not telling them I worked independtly for that time(becouse I did not know I did).My check was for $600 becouse they took taxes out.So my question is.Why did they take taxes out when I was independant and should have paid the taxes myself?Is the company screwing me over?
2007-02-17 11:20:41 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
This sounds strange. If you were an independent contractor, you should have received a 1099. If you got a W-2 and had taxes taken out, you were an employee.
Call the IRS at 1-800-829-1040 (M-F, 7AM to 10 PM)
2007-02-17 11:29:53 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Did the check stub show detail of the $400 they withheld? Including deductions for social security and medicare? You said you got a W-2, so that sounds right. But if you are an independent contractor, you'd get a 1099, not a W-2. Something is very confused here. Does the W-2 show the $400 total in taxes that were deducted? If so, don't worry about whatever says "independently", just file from the numbers.
2007-02-17 22:51:30 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
It sounds weird. I think the screw-up group is the person that prepared your taxes - why were you charged a fee? That makes NO sense.
If you were "independent" you would have received a form 1099 and had no taxes taken out (typically). Just be glad that they withheld taxes. That means you only had 7.65% FICA & medicare instead of 15.3% self employment tax. The company paid 7.65% into the system for you.
BTW, GMoney - the IRS doesn't charge a fee like the poster mentions.
2007-02-17 19:41:31 · answer #3 · answered by Dizney 5 · 1⤊ 0⤋