 I called our post office about stimulus check!!!!? |
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 My wife doesnt have a social security number as she is new to the US. How do I file as jointly-married? |
| Looks like the tax forms has a mandatory field for spouse's social security number, but she doesnt have one yet.. I support her financially, but how do i file?... |
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 Approx paycheck amount?? |
If i get cash money around 350$ per week ..how much gonna be my paycheck for a week ??.i reside in DC
Additional Details
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 Sales Tax? |
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mike_w_mail | What are the differences between a W-2 and a 1099? |
For my entire career as a contractor, I have worked on a W-2 basis. Recently, I was offered a contractor job, but they will hire me only if I agree to a 1099 basis. As someone who has never dealt with this form of compensation/tax before, what are some things that I need to consider if I accept this job? For example, how much paperwork would I need to fill out for tax purposes (mileage, business lunches, business travel, etc.)? Also, if they do not withhold any taxes from my paycheck, then what percentage of my pay should I set aside for tax season?
Thank you. |
 |
 
ed
|
Evidently you understand the W-2. That form shows how much was paid to you and the amount of taxes deducted, and reported to the IRS. This should also show any "Social Security Deductions".
A 1099 indicates that you are working as a
"sub-contractor". No taxes are deducted from your payments, so you are responsible for reporting that income. The 1099 is reported to the IRS, so don't ignore it when filing your return.
Ordinarily, if one works as a "sub" full time, they are considered self employed, which means that one also must pay a
self employment tax, in lieu of Social Security not being deducted as is done on a W2.
If you have received a considerable amount of money, as a sub-contractor, I suggest that you make an estimated payment, which is due by September 15 and Jan. 15. Penalties may be assessed in some cases for not doing this on a timely basis.
As to the amount, you should be able to reference your return for 2005. This will show the amount of tax dollars and from that you can compute the percentage. You can use that percentage for this year, unless your income has increased dramatically which will put you in a higher tax bracket, as a percentage.
The most important point to remember is that you are required, each year, to pay at least 90% of last years tax amount, without penalty.
This is true if you earn as much as LY, or more than LY. Consider tax on a W2 as well.
As to "Self Employment Tax", if any due, this is done at filing time in April. If income as a "sub" is significant, check with an accountant.
Depending on your estimated income for this year, you may be looking at 15%,20%, up to 28% taxe rate. Don't overpay, but be mindful of the 90% rule.
Yes, you can deduct expenses related to that job. If you are out of town you can deduct lodging and "meals, to a max amount". If not out of town meals are not deductible.
Keep records. |
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J C
|
W-2 is generally for employees of companies, while 1099s are for miscellaneous incomes such as Contract work. Other pay on 1099 are casino proceeds and non-traditional income. |
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special-chemical-x
 |
They are trying to "hire" you as an independant contractor.
They can avoid insurance costs in this fashion because as an independant contractor you are running your own business which they are purchasinga a service from.
You will have to mail in income taxes on your own to all agencies. It'll probably be a lot of hassle. |
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Jim
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A 1099 is a business form that shows the amount of money they were paid .. ie you work for someone who does not withhold taxes from you and you are considered a contractor not an emplyee... a W-2 is filled when you work for a company and they may or may not withold taxes but you do not fit in the contractor area and taxes should be withheld and paid by you and the company... |
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Chuck H
 |
you will need to keep receipts for you mileage, and any other items that you have to buy for your job as a tax write off, that includes work boots and other specialty items, and depending on your accountant, you can write off lunches and dinners. and the standard deduction for a single person with no dependents is about 18 % but I would hire an accountant,you can write them off too, and let them handle all of this for you including filing your taxes. |
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Judy1
 |
On a W-2 basis, you are an employee, and your employer will deduct taxes from your paychecks based on what you put on your W-4 form, and will be responsible for paying their half of social security tax on your income.
If you're working on a 1099, you are an independent contractor. The IRS has rules on who is considered an independent contractor, the employer doesn't just get to decide.
The plus side of being an independent contractor is that you get to deduct more expenses. The downside is that you have to pay both halves of social security tax, for a total of 15.3% of your income after business deductions but before taking off your standard or itemized deductions, and your exemptions - this is referred to as self-employment tax, but is really social security and medicare tax. You are also responsible for calculating and sending in these taxes every quarter through the year, which can be a paid. It's a good idea to talk to a CPA about this before you get involved, and maybe let them handle it unless you're really up on tax law. The person you're working for won't deduct anything, the payment will be your responsibility.
The paperwork for showing deductions isn't bad, but you'll have to keep written records of everything you want to deduct. You probably need to set aside about 25-30% of your pay for federal taxes, more if you make over $40,000 or so. And don't forget any state or local taxes - you'll owe them too. A CPA can give you a better guide to what you'll owe, what you can deduct, and what records you have to keep. They won't charge you an arm and a leg. And go to a CPA, not H&R Block or someplace like that, for advice.
As an independent contractor, you probably won't have benefits, even paid vacation holidays or sick days, or medical coverage. |
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hate me please
 |
1099 is wen you don have a withholdding if you make more than on you withholdding range you will have to pay if is the contrary you will get less money back or no money now remenber that you will need to save all the receive's if you are gonna claim it as a deducttible but if it was me you can always hire a accountant just like me. |
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runs_with_scissors
|
A W-2 is for an employee of the company. A 1099 is for an outside contractor, who is not a company employee. If you take work on a 1099 status, taxes will not be withheld. Plan on setting aside at least 25%, to be on the safe side. The other things; mileage, business lunches, business travel, etc., you may be able to deduct, if you're itemizing your deductions (1040-A). |
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S.A.M. Gunner 7212
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It's a HUGE pain in the a.s.s. Dont do it unless the money they offer is at least two to three times what you would normaly make. |
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crazyhumans
|
If you are a paid employee of a company you receive W-2 at the end of the year. A 1099 is issued to contractors. The company has something called backup withholding in which they are required to hold 20% for taxes. Everything else is your responsibility. |
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misslabeled
|
There are two types of workers--employees and independent contractors. The IRS has set certain guidelines for employers to determine what kind of worker they are using. The employer cannot arbitrarily say someone is a contractor simply to avoid withholding taxes.
Nonetheless, if you are legitimately an independent contractor, You are responsible for all the taxes, where with an employer they pay half and you pay half through withholding. So you need to set aside about twice what has usually been withheld. On the bright side, you get to write of more on your income tax, so do keep track of everything. As for mileage, miles to and from the workplace don't count, but the rest does.
To get a determination from the IRS regarding your worker status, check out this form.
http://www.irs.gov/pub/irs-pdf/fss8.pdf |
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miss_hgl
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A W-2 is filed by an individual, a 1099 is for business owners. |
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