if you are self employed you will recieve a 1099 right?

Question

i also wanted to know how would i report my income from a 1099? and if i could write of any expsenses while recieving a 1099? i also wanted to know if a housing allowance, or living allowance is taxable? lastly what is better recieving a w2 or a 1099?

Answer 1

You won't necessarily get a 1099, but whether you do or not you must report your income. Reasonable and customary expenses for making that income can be deducted - you show them on schedule C along with your income. This does NOT include a living or housing allowance, and does NOT include mileage traveling back and forth from home to your usual place of business - those are not deductible..

If the company had you fill out a W-9 form, you'll most likely get a 1099 from them. They are required to give you one if they paid you over $600 for the year, but sometimes companies don't do what they are supposed to do.

Usually a W-2 is preferable, since the employer then pays half of the social security tax and also pays for unemployment comp and workers comp coverage for you. They, or you, don't just get to choose - whether you get a 1099 or W-2 legally depends on the work you are doing and the conditions of doing it.

Answer 2

Matter of opinion, but a w-2 is better because your employer is paying 1/2 your social sec and medicare... If you do work for someone, as self-employed, then they should provide you a 1099. this goes on Schedule C of your 1040. The Schedule C or Cez let's you take certain deduction/or expenses rather in the cost you incurred while making this money. You'll see your self-employment tax on page 2 (or back of) the 1040 Form.

Answer 3

If you receive a 1099 you can report the income on 1040 Schedule C and take deductions related to the income reported on the 1099. However you will have to pay self employment tax on the income ( which is 15.3%) in addition to the income tax due at your tax rate.
If you receive a W-2 social security and medicare taxes will be deducted from your income (7.65% half of the self employment tax).

Answer 4

Only if you're working for someone else! Yes, you can write off business expenses. Housing allowances are taxable as income.

What's better? Depends. For most people that W2 is better, because you have to pay less social security taxes that way, and have the protection of an employer/employee relationship.