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Is anyone out there an independent contractor that is a 1099 tax filer? I dont understand the IRS Laws- if you‘re a salaried person making under 9,000 per year you DONT need to file taxes but if you‘re a 1099 you must! As a 1099 we pay our own expenses, gas-this year I spent more on gas then I made it seems yet I had to pay an accountant 200.00 to do my write offs etc. Free services dont do 1099’s.

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    • 0 votes vote up vote up

      Tuliplady wrote Sep 27, 2012
    • Turbo tax deals with 1099’s and it won’t cost you $200!!!!  You can do it yourself, they‘re no big deal.  

      If you receive a 1099 from someone who employed you, then you must file a self employment tax return.  If you‘re nervous about doing this, I recommend Turbo tax or some similar program as they will walk you thru it.  

      I have 1099 income every year, some years I have a whole stack of 1099’s.  It’s no more difficult than if you’ve got W-2’s.




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    • 0 votes vote up vote up

      Butterfly13 wrote Sep 27, 2012
    • Thanks for your response-the accountant charges so much because of the write offs-everything from the sq foot of the room I use for an office-to mileage, donations, etc.  it is too complicated for me to do myself unfortunately.  I still don’t understand why we are penalized for being self employed?  I had to close my IRA early needed the $ and had to pay taxes on my own savings - its insane!




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    • 0 votes vote up vote up

      Tuliplady wrote Sep 27, 2012
    • Ok, first, we are not penalized, we merely have to pay our taxes on that income the same as we pay taxes on any paycheck.  No difference.

      With self employment, the catch is, we are responsible for paying in all our social security.  On a regular paycheck, our employer pays half of the total social security bill and the other half comes out of your check. When you are are an independent contractor, you‘re your own boss so you pay it all.

      You’ve now got the numbers from the accountant on a tax form, so you can use them from year to year without having to go back to the money sucking leech.  The square footage you use isn’t going to change, nor are a lot of your basic expenses.  The ones that do change, you will know about and can make your own changes.  Also, take a good look at your tax forms, did he really get you enough deductions to warrant that $200 bill?

      Next year you will be better prepared and can budget accordingly.




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    • 0 votes vote up vote up

      Butterfly13 wrote Sep 28, 2012
    • If you are a w2  employee and you earn 9,000 or under you do not pay taxes-at all.




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    • 0 votes vote up vote up

      Tuliplady wrote Sep 28, 2012
    • They still take them out of your check, you just get it all back at the end of the year, and they still take out social security, no matter how little you make.  If you‘re self employed and make under 9000, you won’t end up paying any actual income tax either, but you’ll pay a substantial amount for social security.




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    • 0 votes vote up vote up

      Vikki Hall wrote Sep 28, 2012
    • It sounds like Tuliplady has it all covered. Very informative BTW!




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