I am curious how many setters file a 1099 tax form at the end of the year and declare there earnings on this form. I wonder if this is better than getting paid like the regular employees who get a W2? Any thought on pro's and con's?
thanks
Cranky.
taxes
(5 posts) (4 voices)-
Posted 1 year ago #
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I am canadian so I dont understand the coding.
But im assuming that the 1099 is for contracted work and the W2 is for hourly of salaried work?
I am just throwing this question out so i can understand the topic and potentially weigh in
Posted 1 year ago # -
I'll preface this by saying I'm not an accountant, but I've dealt with 1099's long enough to know most of the in's and out's. First you don't file a 1099 you receive a 1099 from whoever has paid you. Then most likely you will file a schedule c as being self employed to claim deductions and pay SS and other withholdings that will not have come out of the 1099 income.
So to answer your question simply, 1099 income will allow you to deduct any expenses that you incurred while performing said job ie. Gas/miles, setting tools, tape, chalk etc. If you received a W-2 then standard withholdings were taken out and things like gas to and from "your regular place of work," is not allowed. Some of the other items may be allowed as "unreimbursed business expenses." I'd highly recommend talking to an accountant, because it can get a little complicated depending on the number and types of deductions.Posted 1 year ago # -
An add to offroute's excellent description: you typically only receive a 1099 as a contracted employee, and only if your fee is $600 or higher. You definitely need a good tax guy (or a hell of a lot of time) to make this filing worthwhile!
Posted 1 year ago # -
Thanks Guys.
It's time to have someone smarter than me do my taxes.
C.
Posted 1 year ago #
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