Question on 1099

[dsatish]

If you are working on 1099, then do you need to pay social security and medicare taxes ?

 

[dsatish]

Thanks Joe.

 

[dsatish]

Does any one have an experience getting paid on 1099 ? If so how did you pay the social security , medicare taxes and estimated income tax on a monthly basis or quaterly basis ? What method did you use to pay these taxes ? ( Did you just print the form from IRS site , filled it and posted it along with the check or did you go through a tax consultant ?)

 

[Waiting...]

Working on 1099

Hi Satish,

Can you please let me know any details about working on 1099? I am expecting a job offer to work on 1099 and i dont have a clue about it. Can youp please let me know of any details about it.

Thanks

 

[dsatish]

Hi Satish,

Can you please let me know any details about working on 1099? I am expecting a job offer to work on 1099 and i dont have a clue about it. Can youp please let me know of any details about it.

Thanks

Steps to work on 1099
----------------------
1) Just get monthly check payment from the vendor (your 1099 employer)
2) Talk to ADP or Paychecks and ask them to run pay roll on a monthly basis.
They will take your bank aaount number and deduct taxes and pay to IRS. This will be done through a pay roll. Go to the web site of these payment processing companies and get contact info of their local person.
3) That's it. No need to incorporate company or fill out any paper work.

 

[Sunny2005]

1099 - Expenses

what about people working on project by project basis. Say just 2 months worked for a Company A on 1099 basis. Also, there is some expenses for that 2 months project.

Can we file those expenses during tax return ?
How long a person can work on 1099 basis before registering as a company ? Is there some time limit ? OR WE have to register with state /city before start working ?

I heard that you send the money to IRS on quarterly basis. Do we need to do this from the begining ?


Please share your experience.

Thanks

 

[dsatish]

what about people working on project by project basis. Say just 2 months worked for a Company A on 1099 basis. Also, there is some expenses for that 2 months project. Can we file those expenses during tax return ?

Yes, you can. I did the same thing. Your tax return can include both W2 and 1099. For the 1099 income, you can make deductions for expenses.

How long a person can work on 1099 basis before registering as a company ? Is there some time limit ? OR WE have to register with state /city before start working ?

You can work for ever on 1099. No need to register a company.

I heard that you send the money to IRS on quarterly basis. Do we need to do this from the begining ?

You need to do it from the time you have started getting 1099 income. You need to file estimated taxes every 3 months. But if you work only for 3 or 4 months in an year on 1099, then there is no need to file estimated taxes.