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i dont know if im considered an employee or not i used all of my boss's supplies and equipment.

2007-03-24 08:51:22 · 6 answers · asked by bill s 1 in Business & Finance Taxes United States

6 answers

It sounds like you were being paid as an independent contractor. You should have received a 1099 instead of a w-2. To file your taxes, you will need to use schedule C. Now the bad news-- you will probably have to pay a considerable amount to the IRS unless you paid quarterly estimated taxes. Under certain conditions, you can be paid as an independent contractor, but many times, employers do this to avoid paying payroll taxes and worker's comp premiums, even though you don't qualify as an independent.

2007-03-24 09:06:19 · answer #1 · answered by crazydave 7 · 1 0

Check the form your employer provided you at year-end. Specifically, see if the form is a W-2 or a 1099-Misc. My assumption is that your "employer" gave you a check each pay period but never gave you a payroll stub detailing the withholdings for taxes.

Your "employer" treated you as a subcontractor and therefore was not required to withold any taxes or pay for insurance on you to work there.

Assuming you are a subcontractor and should receive a 1099-Misc., fill out Schedule C for the federal return. With this form you will be required to report the monies the employer paid you, but you also will be able to deduct expenses against this income (such as mileage, supplies, etc.). Bad part of this, you need to pay self-employment taxes too (social security and medicare).

One item to note, you would probably be considered an employee and not a subcontractor if you meet certain tests - included are the supplies and equipment provided to you by the employer, the employer tells you where, when, and what to do. Employers love having subcontractors because the employer is not responsible for social security, medicare and insurance on the subcontractor. But of course, this "screws" the unknowing subcontract especially if he/she thought he/she was an employee.

Good luck, contact your tax professional for more information.

2007-03-24 16:10:14 · answer #2 · answered by NoNickname 2 · 1 1

If you were an employee, your employer would have been required to take out social security and medicare, so it sounds like you are being paid as an independent contractor. You'll show your income and related expenses on a schedule C or C-EZ, and use schedule SE to figure your self-employment tax, which is social security and medicare. The numbers from the bottom of those two schedules will transfer to a form 1040.

2007-03-24 19:07:07 · answer #3 · answered by Judy 7 · 0 0

Did he give you a W-2 or a 1099?

You may be considered an independent contractor. Info:
http://www.irs.gov/charities/article/0,,id=131137,00.html

2007-03-24 16:02:53 · answer #4 · answered by Anonymous · 1 0

to be sure ask your boss. you could be considered a private contractor, or something else. my sister-in-law was caused a lot of trouble because her boss didn't take taxes out or report her wages but was considered an employee. your boss can tell you better than anyone else how you are reported you can go from there.

2007-03-24 16:01:17 · answer #5 · answered by bernel1403 5 · 0 1

It depends, however, more than likely a 1099

2007-03-24 16:00:52 · answer #6 · answered by Mortgage Pro 2 · 0 0

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