1099 contractor questions?
1099 contractor questions?
I recently started working for a marketing company which involves me to do D2D sales which is pretty good money. I am considered a 1099 for the company but they do not pay anything but the uniform they gave me. on a daily basis I would drive up to 100 miles that is job related. I am in college and I have no idea what to do as far as filing taxes where the 1099 is involved, so what can I do as far as claim and taxes?
Answers:
AJ: Well you have to file a Schedule C on the 1040 return. you can claim mileage you had in relation to the job, which is somewhere around $0.34 per mile. Just make sure you can document everything. Also you will be assessed a self employment tax on top of normal income for profits from your business.
2009-01-10 13:25:30
2009-01-10 13:25:30
Judy1: Mileage deduction for 2008 is 50.5 cents Jan-June and 58.5 cents July-Dec for business miles. The cost of the uniform is also an allowable expense if you had to pay for it.
You'd report your income and allowable expenses on a schedule C or C-EZ, and also fill out a schedule SE to calculate your self-employment tax (social security and medicare). The numbers from the bottom of the two schedules will transfer to your form 1040. You can't use 1040A or EZ.
2009-01-10 13:37:29
2009-01-10 13:37:29
Chosen Answer
stephenweinstein: On Schedule C or Schedule C-EZ, you claim the use of your vehicle for business EXCLUDING commuting. (You are not allowed to claim use of your vehicle for commuting. Your profit (the amount on your 1099, minus expenses that you can claim) is subject to regular income tax, and goes on the business income line of Form 1040. Additionally, 92.35% of your profit is "earnings from self-employment" and is subject to a 15.3% self-employment tax. You compute this tax on Schedule SE. On Form 1040, you add the regular income tax and the self-employment tax to find your total tax.
2009-01-10 14:29:44
stephenweinstein: On Schedule C or Schedule C-EZ, you claim the use of your vehicle for business EXCLUDING commuting. (You are not allowed to claim use of your vehicle for commuting. Your profit (the amount on your 1099, minus expenses that you can claim) is subject to regular income tax, and goes on the business income line of Form 1040. Additionally, 92.35% of your profit is "earnings from self-employment" and is subject to a 15.3% self-employment tax. You compute this tax on Schedule SE. On Form 1040, you add the regular income tax and the self-employment tax to find your total tax.
2009-01-10 14:29:44
jayteaou812: First of all get an account onboard to help you. You can deduct many items with this business including mileage. You will need to be sure to keep a mileage logbook. Also, be sure to have your account pay your taxes as they are due. This is where many people get into a HECK of a lot of trouble with the IRS. If you do these things you should be okay. You can read more about this on the website listed below.
2009-01-10 14:54:52
2009-01-10 14:54:52