You sound like an employee, not an independent contractor. File Form SS-8 with the IRS for a determination on that.
Until then, you'll need to start making quarterly estimated tax payments to the IRS using Form 1040ES.
2007-04-24 09:21:29
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answer #1
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answered by Bostonian In MO 7
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You don't have any deductions because you are an employee not a 1099 independent contractor. However, by accepting 1099 pay, you are responsible for sending the government quarterly payments for SS, local, state, and federal taxes out of your pay.
Your company is trying to default the government by not paying employer paid taxes like SS, federal and state taxes, and workman's comp. I'd find a new job and turn in the other employer since it's against the law to classify an employee as 1099 if they only work in the company's office.
2007-04-24 10:15:38
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answer #2
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answered by ne11 5
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Let's see, 40% of $30,000 is already $12,000. And that's just for federal. If you earned that money evenly during the year and didn't send any estimated tax payments, you could be looking at a $500 penalty for failing to do so (8% of $12,000 on a weighted average). You still have time to increase the withholding on your W-2 and send in the 9/15 payments (it's late for 4/15, 6/15 and 9/15). If you can't pay the tax bill at tax time, you will end up on an IRS payment plan. Unless you screw up that agreement, you will owe roughly 12% for penalties and interest. PS, are you covered on a retirement plan at work? There is a partial IRA deduction if your income is above $83,000 for the year. If you make $90,000, you may only be able to deduct $2600.
2016-05-17 22:39:00
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answer #3
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answered by ? 3
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You're an independent contractor or self employed with a 1099 .. I work for a company that answers phone calls for infomercials that you see on TV. You can get deductions on things like internet service, telephone with a headset, new computer / computer parts, printer ink, printer paper, anything that has to do with your office really. Only bad thing is you have to pay in at the end of the year for it instead of getting some money back, you gotta pay.
2007-04-24 09:21:26
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answer #4
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answered by Hudgins 1
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hmm i'm trying to figure out what exactly your job entitles for them to have you be an "independent contractor"? I don't know of many loan processors that get a 1099 so thats the confusing part. Now are items in your office supplied to you? (pens, papers, staplers, fax machine, ect..)? milleage you can't write off unless its part of your job (no o and from work but from differnt locations or offices you can write off). possibly a part of your cell phone if any of it is used for business. Its just tricky as being a processor i can't really tell you what to write off as others i know get a regular paycheck.
2007-04-24 12:46:59
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answer #5
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answered by joe c 2
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anything you buy to do your job pens, books, computer,laptop,computer desk,all kinds of things like that.also keep a detailed logbook of all the miles you drive to work and back you can do it daily or weekly.but do it it is very important i live in michigan and am self employed we get 44.5 cents a mile. do the math say you drive 10000 miles a year to work and back that would be a $445 deduction.you can either write off gas or mileage but not both.writing off mileage is the better thing to do.but you need proof (logbook) figure out how much it is to fill your tank and see how many miles you get for the money.call a tax preparer to see what you can get for mileage in your area. hope this helps
2007-04-24 09:28:01
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answer #6
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answered by eric b 2
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1099 means u are technically self employed-no taxes will be taken out -so u will owe at the end of the year
2007-04-24 09:19:04
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answer #7
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answered by Anonymous
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You are considered contract labor. Keep track of your mileage for work, internet expenses, even at home, office supplies, furnishings, postage, telephone, home offices must be a room that is just an office not office/ bedroom etc... this will be a red flag for audits too so it may not be worth it. Keep track of travel expenses, you may be able to find a way to tie this to your business.
2007-04-24 09:23:18
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answer #8
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answered by Ktcyan 5
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