1099
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- 14 Responses
- sherm
anyone here work as a full time consultant for a company?
I may enter this status soon and wanted to know what it entailed from people who actually may have done it... rather than the IRS website.
cheers
- 7point340
did you spend 30k to make 31k? if yes, enter a 1 on line 37
- Your jib is well cut sir, and frankly, I like it.TheBlueOne
- you flatter me, rev7point34
- just call it as I see it 7.34TheBlueOne
- skt0
ITS JUST SIMPLE MATHS
- OSFA0
I've heard is not the best of options when it comes to taxes....
- SigDesign0
It's complicated... on the one hand you can deduct lots of stuff if you're careful, but on the other, you have to pay much more in taxes, and if you don't pay quarterly, it can add up...
- keep 30% on the side on every cheque and at the end of the year you can buy tons of RRSP to lower your taxes, etc. I prefer to pay yearly.zarkonite
- o rly...sherm
- what is RRSP?SigDesign
- hmm not sure what the american equivalent is. It's a kind of savings bond that lowers your income tax bracket, you buy 1000$ it's like you made 1000$ less in income.zarkonite
- if you buy 1000$ or RRSP you get 1000$ less income to pay taxes onzarkonite
- so like a IRA...in the US
sherm - ahh i see... good advice, that.SigDesign
- TheFatBaron0
Actually, you -must- pay your taxes quarterly in this situation, or you pay a fine at the end of the year. It's not that painful, but it really does suck to have to write that check at the end of each quarter. I'd recommend finding an accountant, and be extremely organized with receipts, etc.
- sherm0
I'm ecstatic about finding pretax shelters in this situation.
- Faction180
1099 = lower taxes if you do it right, higher taxes if you don't.
- tkmeister0
set up SEP and put as much money as you can in it to reduce your taxable income and be smart with your money.
- sublocked0
1099 = no taxes if your employer doesn't get your social!
not that i'd advise that or anything.
- SigDesign0
The other thing is... if you're filing a 1099, you're an independent contractor. You have your own business, and you are supposed to control your work situation. I've been in a situation before where I was an employee of a small business, in basically, an administrative role of sorts, and the guy claimed me as an independent contractor to save money. I only made $10 per hour at the time...no benefits...and had to pay a hefty check at the end of the year, because he made a last minute decision that he was going to declare me as an IC.
- MrOneHundred0
I am a consultant.
People are always consulting me on topics like;
• Who the fuck are you?
• Why are you following me?
• What are you trying to prove?
• Is that supposed to be funny?Still trying to figure out how to make it pay – YouTube style.
- bulletfactory0
1099 is when you're considered a independent contractor. no taxes are taken out before hand, you need to do that yourself.