Tag Archives: independent contractor

New Form for Employees Misclassified as Independent Contractors

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 […]

Missing a Form 1099?

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. […]

Misclassified Workers to File New Social Security Tax Form

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 […]

Outsourcing

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 […]

Reporting Miscellaneous Income

FS-2007-26, November 2007 – Courtesy of the Internal Revenue Service While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as: cash earned from side jobs, barter exchanges of goods or services, […]

IRS Announces 2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile

Courtesy of the Internal Revenue Service WASHINGTON – The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or […]

EIN for Two Businesses

Today TaxMama hears from Linda in VA who has this story. “We have a small residential construction business and have established an EIN. We also have a very busy notary business. Until now we have used our Social Security numbers when registering as independent contractor to do notary work. We’d like to get better organized […]

Freelance Project

Today TaxMama hears from Melissa in the Tax Parlor, who tells us , “Hello! I am a real estate agent (independent contractor) and I was just offered a very part time consulting position for a local non-profit neighborhood organization. I will be researching the neighborhood real estate market and reporting back to the non-profit. This […]

Auto Expenses

Today TaxMama hears from Lynn in Indiana, who says “I have 2 cars, a Corvette with a $537 per month lease payment and a Ford Escort that’s all paid off. If I work at 2 offices as an independent contractor, do I have to travel to both in one day to write off mileage? How […]

Taxed Twice?

Today TaxMama hears from Kerry in Iowa, who tells us. “My husband is a sole proprietor general contractor. The lumberyard has handed him some great jobs. But they have been the general contractor on them. They pay my husband for his contracts with them. Recently, we hired a subcontractor to do the electrical work, which […]

Esteemed Estimates

Today TaxMama hears from Linc in Texas who needs a headache cure. “I recently started working for a company that pays me with a check every week. They do not withhold any taxes from it. How should I go about paying taxes? Quarterly or at the end of the year? I tried to read the […]

1099? Who me?

Today TaxMama hears from Don from our TaxBootCamp blog, who is puzzled. “Recently I was asked by a client for my SSN so they could give me a 1099. I explained that I’m self employed and pay my own quarterly taxes, and since I just provide a service and am not employed by my client […]