My employer says I can pick to get either w-2 from him or a 1099. Should I pick base on how much tax I'll need to pay? How should i look at this, I won't make a lot from the job, should that be a consideration too?
2007-02-24 09:40:51 · 4 answers · asked by cuz 2 in Business & Finance ➔ Taxes ➔ United States
You should consider how much you'll make. I believe the difference is that with a W-2 they withhold all the taxes for you (and you should likely claim either 0 or 1 so they withhold the most and get money back instead of owing). A 1099 I believe is where you get all of your earnings and pay all of your own taxes at the end of the year. It does depend on how much you'll make for the entire year too. Ask your employer and they should be able to guide you. I think I'd take the W-2 though.
Also, check the IRS website and they'll explain what both forms are and when you should use them. Good luck.
2007-02-24 09:51:38 · answer #1 · answered by Teresa 2 · 0⤊ 3⤋
You'll pay less taxes with a W-2, since the employer will pay half of the social security and medicare - on a 1099, you'd pay all of it. You'll also have more protections like workers comp and unemployment comp. Go for the W-2.
The 1099 would only benefit you if you have high personal expenses on the job - then it might or might not be better.
Actually, legally neither you nor the employer gets to just choose - it depends on the level of the job, and its duties and who controls how, when and where they are performed that determines whether you're an employee (W-2) or self-employed, independent contractor (1099).
2007-02-24 10:15:42 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
W-2 the empoyer will pay the taxes a 1099 is a sub contractor and you will be responsible for the taxes
2007-02-24 13:23:56 · answer #3 · answered by G L 4 · 0⤊ 0⤋
residing house place of work costs are stated on style 8829 for your self-employment. the effect transfers on your 1099 and decreases your self-employment earnings. residing house place of work costs are stated on schedule A for workers as an unreimbursed worker fee. Your deduction is limited to the surplus of two% of your adjusted gross earnings. As area of the place of work in residing house deduction, you're able to deduct area of your loan interest and real sources taxes. Any area final of those costs is taken on schedule A interior the regularly occurring spot for loan interest and real sources taxes. An allocation it rather is predicated on the quantity of time or earnings for each interest could be real looking.
2016-11-25 21:20:29 · answer #4 · answered by ? 4 · 0⤊ 0⤋