Independent Contractors

Trucking Along

May 6, 2008

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Today TaxMama hears from Jim in Los Angeles, who tells us. “I run a trucking business. This will be my first year hiring contractor drivers so I want to know, at the end of the year when I give them a 1099 am I supposed to send one to the IRS with my corporate tax [...]

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Dispelling Tax Myths

April 9, 2008

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Today TaxMama hears from Brian in Connecticut, who says. “I did some work for a guy in 2007. He paid me with business checks totaling $6,100.00 with no deductions. He refuses to give me a 1099. What should I do?” Share this:

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New Form for Employees Misclassified as Independent Contractors

March 7, 2008

In 2007 were you an employee whose employer paid you as an independent contractor? Employees usually receive a Form W-2 while independent contractors usually receive a Form 1099-MISC. Generally, a worker who received a Form 1099 for services provided as an independent contractor must report the income on Schedule C and pay self-employment tax on [...]

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Missing a Form 1099?

February 8, 2008

Courtesy of the Internal Revenue Service TT-2008-25 If you receive certain types of income, you may get a Form 1099 for use with your federal tax return. Form 1099 is an information return provided by the payer of the income. The payer should send or provide your Form 1099-series information returns by January 31, 2007. [...]

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Misclassified Workers to File New Social Security Tax Form

January 4, 2008

Employees who were misclassified by their employers as independent contractors should use new Form 8919, Uncollected Social Security and Medicare Tax on Wages, to figure and report their share of uncollected social security and Medicare taxes. Find out more in news release IR-2007-203. —- TaxMama Note: “Misclassified” in this case, means – workers that were [...]

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Outsourcing

December 19, 2007

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Today TaxMama hears from Shawn in New Jersey who tells us: “I plan to be an independent contractor working with architectural renderings. My friends in Asia will be actually doing the work. I will be getting the jobs, collecting the fees, and paying the Asian rendering team. How do I handle this for taxes, since [...]

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Should I Report Income?

November 14, 2007

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Today TaxMama hears from Michelle in Pennsylvania, who has this dilemma, “My husband was working and receiving $300 a week for 7 weeks. He was paid with a personal check. Do we claim that? Because his boss will not be claiming him, I was not sure. Some people told me no; some people told me [...]

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SS-8 – or Dishonest Boss

August 22, 2007

Today, Nancy from West Virginia is confounded, “My boss sent me a 1099 instead of a W-2. But I was an employee, not a freelancer. What do I do? Share this:

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New Social Security Mismatch Rule

August 14, 2007

Shades of 1984 and McCarthyism! This new rule is going further than simply holding employers responsible for ensuring that the workers they hire are all legal. That is as it should be. Everyone should take responsibility for their own actions and choices. However, it includes a snitch-factor – encouraging employees to turn others in – [...]

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