Free Tax Tips

Posts Tagged ‘w2’

Question: Would you switch from a W-2 job to become a 1099 contractor?

I’m thinking about switching from being paid 70-72k/year + benefits at a w-2 job in one setting to a 1099 contractor job at about $65/hr. How much of a pay increase is that? I’m in Minnesota, if that matters. I can switch to my wife’s insurance at minimal cost too so I’m not too worried about benefits.

Answer: If it’s the same job, you and they can’t just switch. A given job is one or the other, an employee or a contractor, and that’s defined by the terms of the job.

What the new job would pay you depends on how many hours you work. You’ll pay almost twice as high a % for social security and medicare as a 1099 contractor. And then there’s the value of the benefits you lose…. not just insurance, but paid vacation, sick days, eligiblity for unemployment comp if you are laid off or workers comp if you get hurt on the job, and any other benefits you might have as an employee.

Only you can evaluate what the loss of benefits is worth to you.

You say … Letter to the editor

The time is now. The tax revolution starts with our receipt of W-2 or 1099 forms. I refuse to pay any taxes on what my company spends on my health insurance. I worked my tail off for years to get security in retirement.

10 Reasons to Switch from W2 to 1099 Free Agent Entrepreneur by Mike Farrell with aspenIbiz

Question: Do I need to figure Medicaid and Social security when filing taxes on some non-employee work?

I did not receive a 1099. Just a W2 copy with the lump sum that the company would be claiming.
Yeah, turns out it was a 1099 and not a W2.

Answer: If you only got a W-2 copy, Medicare and Social Security taxes would already be withheld from that. You would not need to figure those taxes again then. Only if you got a 1099, then you’d be responsible for all your taxes, and social security and medicare tax would be roughly double what you’d pay as an employee, since with a 1099 you are employee and employer and responsible for both.

New rules mean more paperwork, longer waits for Florida driver’s licenses, ID’s

The process of getting a Florida driver’s license, not the world’s most favorite thing, used to take an average 20 minutes at one of Jacksonville’s nine local Tax Collector’s Office branches. Now, be prepared to spend a lunch hour to get that piece of plastic with the photograph you hate. And make sure to bring a lot of certified information that proves who you are, where you live and your …

Question: Federal tax help?

Where does form 1099-Q and 1099- R.What line???

Answer: 1099-Q goes on line 21
1090-R – depends on what kind of distribution. Either 15a and 15b if distributions from an IRA, or 16a and 16b if distributions from pensions/annuities. For capital gain, you need to see the instructions on your 1099-R.

Flaw found in TurboTax software

The flaw may have caused thousands of retired federal employees to overstate their medical deductions.

Question: How do I go about filing a 2004 tax return without W2’s or 1099?

I trusted a family member to file my return in 2004 using Turbo Tax and they said they did it electronically. When I finally discovered that it wasn’t filed it was too late and not only had their computer crashed but they lost my paperwork. Two different W2’s and a 1099. It was a nice amount I was to recieve back so it would be great if I could figure out what to do. HELP?

Answer: Accuverify.com will help you obtain your federal w-2s and 1099s from the IRS in 1-2 business days.

Volunteers provide free tax service at local Goodwill

If you're feeling overwhelmed by the idea of filing W2 and 1099 forms in your tax return, a volunteer organization may be able to help.

Question: Employer does not file taxes~ can he still report wages to IRS?

My fiance’s employer has not withheld any tax money from him
this year. He just pays him cash every week- and I know this isn’t good! If his employer does not fill out a 1099 at the end of the year, reporting the wages he has paid his employee- can my fiance’ still report it himself? With a close estimate of what he earned? Or does he have to have documentation from the employer?

Answer: He doesn't need documentation form the payer of the monies, but he DOES need to keep accurate financial records himself.

He's being paid as an independent contractor. Legally his status is self-employed. If he's not keeping accurate financial records of his income and expenses he'll be in dutch with the IRS at tax time. He needs to get off his lazy backside and set up a bookkeeping system.

Rolling back misconceptions on income tax

The U.S. tax code is massive and complicated — the perfect fodder for mythmaking. Perhaps the most well-worn fallacy — shot down by many courts despite the best efforts of tightfisted taxpayers — is that federal taxes are actually illegal.