1099/W9 Question
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- thizzbobby
I did some freelance for a company back in the beginning/middle of November 2008 to the tune of $2,000.
I submitted all of my paperwork to them, et cetera, and haven't received a 1099 to-date.
I emailed them the other day to ask what the status was, and they said that they didn't have a W9 on file for me, and they wanted me to fill out another one and send it back.
Is it possible to ditch the process and skirt out on paying taxes on this contract, or will it still be filed on their end? The checks they gave me were cashed, and I did sign a preliminary contract, but I also remember now that I never actually filled that W9 out for them.
I made the switch to doing freelance in the middle of December as a full-time option, and haven't done a lot of research just yet on the in's and out's of being freelance, as far as all of the paper work and paper trails – honestly, I've just been too slammed with work to get started on the administrative stuff.
Any advice? I do definitely want my freelance work to be legit, but the originally referenced company was a horrible experience, and anything I could do to weasel some satisfaction out of the experience in the end would be all that more gratifying.
Thanks, flame on.
- megE0
I would resubmit... I don't mess with the IRS
- TheBIueOne0
spin the wheel take your chances...
- thizzbobby0
I guess my question then is, if I don't resubmit my W9, can they actually claim the money they paid me?
- of course they can and it's in their best interest to claim an expenseJosev
- kona0
"Yes I was calling in reference to some work I completed for you back in November of 2008. I have not received a 1099 from you and was wondering about it."
"Oh yes we remember, we don't have a W9 on file for you, so could you fill one out and send it back to us?"
"oh... uh... me no speaka english... *click*"
- haha!! zing!TheBIueOne
- LOL!, pretty much. That's what I'm hoping I can do here with this.thizzbobby
- uh, did they pay cash? if you deposited a check, that might be a wrench in your planacescence
- If it was cash, I wouldn't waste the 2 bytes of space it took to waste your time in this thread.thizzbobby
- doesnotexist0
I don't know if it would be on the books really, isn't it $6k and then they have to put you on their books?
- I honestly don't know, I thought it was $600. You're supposed to be the experts!thizzbobby
- more than $600...not sure about $2KTheBIueOne
- Anything over $500 is taxable.duckofrubber
- it's taxable, but does it warrant a 1099TheBIueOne
- yesJosev
- kona0
he said he deposited 'checks'. plural. so i'm assuming the checks you cashed were rather small seeing as how the work was 2000.
banks don't "report" you for anything under a 3k deposit made to your account. my mom used to manage a large bank. i guess some dude walked in who won a huge pot in vegas and made deposits in the amount of 2,900 until the 20k he won was gone. once every other week i think.
- thizzbobby0
Yah, I just double-checked. It was $3,000 total. $1500 deposit, and $1500 on project completion.
- tuff call. maybe grow a mustache and change your name to be safe. ?kona
- acescence0
you owe self employment tax on any amount over $400, schedule se.
- doesnotexist0
honestly you probably won't ever hear about this if you choose to forget it on your returns. it's not like the gov't is missing out on taxing millions of your dollars.
- I hope you're right, because that's honestly what I want to do. It was a start-up, so the only worry I have is their VC's.thizzbobby
- And the government of course.thizzbobby
- heavyt0
if you are going to be a freelancer FT, you ought to start acting like a professional.
Sometimes they dont ask for a w9 and they dont file a 1099, and you luck out. But, if they ask for one, they arent just going to forget about it.
Just get an accountant, he/she will be able to write off a bunch of stuff for you and you wont likely owe anything on it anyway- What do you recommend as far as an accountant? A private one, or a company like H&R Block, et al?thizzbobby
- what heavytsaidTheBIueOne
- a pro, for sure. HR Block is cheese.
not sure where you are, but i can recommend one in LA.heavyt
- thizzbobby0
And, what do they typically charge in the way of managing your taxes? I imagine there's a median range.
Like I said before, I just went full-time freelance the beginning of December, so I still have a lot to learn. I DO want to be professional about everything, just figured I'd ask some advice on this since the company clearly dropped the ball, and to be honest – based on my terrible experience on their project, it doesn't surprise me they lost my paperwork, and it wouldn't surprise me if they didn't even file my info to the IRS.
- capn_ron0
I'd be scared because you started a thread about it. Now I would probably resubmit. I am just really afraid of the IRS and they have moles everywhere.
- This isn't my actual username, and I'm posting from an internet café.thizzbobby
- hahahaha, i was never here either.
*casually backs out of threadcapn_ron
- emmaopeel0
resubmit the w9 or just make sure you declare the income. I wouldn't fuss with it if it is under $1000 and you don't have a 1099, but anything above $1000 I would be sure to declare, whether or not they give you a 1099.
no fun to get audited down the road for tax you owe on a $2K job.
- moural0
This is like the third or fourth thread about 1099's in the last month.
I've never seen so many people so eager to pay taxes before.
- ifeltdave0
Become an LLC, the tax rates will be much lower for you.
Then, you pay yourself out of a business account as you need personal money. Any other money you get, checks are made out to "Joe's Business, LLC" and go right into that account, untaxed, untouched until you send it out somewhere else. You'll pay business tax, but those are small in comparision to personal extra income.