1099 tax form

[Patt]

I'm contract labor right now and getting a 1099 form. What percentage in taxes and what taxes like (state, social, federal etc) will I be paying? I've researched it and can't really find a straight answer and I have an app that gives me a good idea on what I'll be paying but without me going to my CPA does anyone on here know the amount?

[PUREBAY2200]

Based on what u claim and what your deductions are.
I was 1099 and I held out 30% of my pay just to be sure.

[fishinpox]

Depends on how much you make , since you are 1099 you are considered self employed so off the top 15% ( normaLly 7.5% you contribute and your employer pays 7.5% ) . Depending on the line of work you are in will depend on how many write offs you'll have. Most guys that are 1099 labor really shouldn't be 1099 labor since the work hourly for a boss usually working construction . But it seems to be the industry standard for residential construction . If this is the case I'd set up a LLC for yourself and that way your write offs are more legitimate if you were to get audited . As stated above 30% would be a good start to put away for tax season , depending on how aggressive you and your CPA feel like getting with write offs .

[redaddiction]

Go to Turbotax.com and sign up and start a return. you dont' have to pay till the end when you file it. But you don't even have to file at all through them but you can still see your tax liability or credit as you answer all the questions.

[Gerald]

You can go to irs.gov

This will get you started.

[Patt]

I plan on taking out 25-30% and as for write offs I wasn't gonna push it I was thinking maybe for fuel but if it turns out to be a hassle than I'm not gonna stress the matter

[Paulox86]

Get an LLC and write off mileage, work clothes, tools, business dinners, home office, office supplies, training, etc...you can get your tax rate in the single digits with enough expenses.


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[eman]

If you have home office and claim it make sure it's office and not laundry room!

[Patt]

Hmm I'm thinkin new decoys new surface drive.. Haha

[Patt]

I won't be at this job for much longer cause after the first I'm hopefully gettin on permanent with axial doing electrical or instrumentation which is what I have a degree for or getting on with triad to get some experience

[Lake Chuck Duck]

Originally Posted by Patt

I won't be at this job for much longer cause after the first I'm hopefully gettin on permanent with axial doing electrical or instrumentation which is what I have a degree for or getting on with triad to get some experience

You in high demand at Axiall, I know that

[Paulox86]

Originally Posted by Patt

Hmm I'm thinkin new decoys new surface drive.. Haha

If you use it to further your business, it's tax deductible.


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[Patt]

I definitely plan on going back into my own business like I did through college but for now just trying to use my degree that I spent 3 years getting!

[I make oil]

Read Incorporate and grow rich or Start your Corporation. It will open your eyes. As an employee you pay all of your bills ect from money that has already been taxed. If you are incorporated you pay taxes on whats left AFTER your bills are paid. Food for thought.

Working for someone else is not always the smartest choice. There are other options as well avaliable to a person with the proper qualifications. Imagine if you didn't have to pay any taxes at all and where able to leagally keep all of your money.