You may still get a 1099.
Technically they should have been mailed out by Jan 31.
But in my experience they can dribble in all through
Feburary.

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rds <rdsaxxxndy[at]verizon.net> wrote:

- quote -

That depends on how much he made in the W2 jobs; if the total
he earned is over the SS base, he doesn't have to pay SS on the
excess (he does pay Medicare, but that's much smaller).

- quote -

Those earnings certainly do count toward his SS base; however,
they count the same as the same amount of W2 wages (on which
he'd pay half the SS taxes). There's also a tax deduction for
the second half.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Josh B." <joshua.bilsky[at]us.transport.bombardier.com> wrote:

- quote -

You took a job with a rate as an employee, then they turned
around and made you a 1009er. As an employee you would have
paid half of your SS and the employer would have paid half.
Now you must pay the full SS, about 15% as the self
employment tax and fill out a scedule E. As for your
withholding, since you didn't pay with withholding for the 3
months, your refund will be reduced. I never convert from a
W2 to a 1099er without at least a 10% increase in my rate.
The 15% tax is basically flushed down the toilet as those
earnings will not count towards your SS base, so you get no
credit for those earnings as far as SS is concerned.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Josh B." <joshua.bilsky[at]us.transport.bombardier.com> wrote

- quote -

There are no reports to file quarterly, just a quarterly
estimated payment, (s) if you include the state.

That you didn't do this isn't a fatal error. There may be
penalties, but you can ask for them to be abated under the
circumstances.

- quote -

Generally the employer would not want to position themselves
as having gave you tax advice. Hindsight is a wonderfull
thing, so learn from it. You should ahve gone and talked to
a tax professional last summer to assess your situation and
take care of anything that needed taking care of.

- quote -

Prepare and file Schedule C with your return. Schedule C
reports your earnings from this self-employment, and claims
any expenses you incured while generating this income.

- quote -

Schedule C and SE for starters. There may be others, so
consider seeing a tax pro this season.

If you plan on doing any "consulting" work in the future,
you will need to make estimated tax payments using Form
1040-ES.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My disclaimer: If any or all of this seems to be nonsense, I
apologize in advance. When it comes to taxes, my knowledge
is limited.

Last year I was in the middle of a relocation. As many IT
professionals, I decided to take a short term consulting
position. I ended up working for 3 months from the end of
March 05 to beginning June 05. I worked for a consulting
firm on a contract for one of their larger clients. Now,
when I started the job, they initially gave me a W2, but
then they said I didn't need the W2. I don't know if they
were trying to be shady or what. But what had happened was
the initial offer letter was a normal letter that had no
mention of untaxed earnings, but on my first day, I received
an email that the first offer letter I signed was incorrect.
They sent me the new offer letter which mentioned that I
would make the same amount per hour, but I would be
responsible for taxes and they would issue a 1099 form. OK,
fine, whatever as long as I get paid. Meanwhile I never
received a 1099 from them. Anyway, they gave me a W9 to
fill out and sign which I did. They told me that I had to
invoice them for each week that I worked which I did. I
simply made an invoice with the time I worked, hourly rate,
and the total amount they owed me. They paid me weekly with
my first invoice being paid Net 30 days.

Obviously I have not paid any taxes, state or federal, on
the three months of income I earned with them. In the past,
I've always been a W2 employee, and I typically file using
form 1040. The other two positions I worked in the same
year were W2 and the taxes were taken out. My concern is
1.) from my little reading in the newgroups is that you're
supposed to file these taxes quarterly or else you get hit
with penalities and 2.) making sure that I pay what is owed
to the IRS and state to avoid any issues.

At this point, my question is what can I do to get this
taken care of? The last thing I want is trouble with the
IRS, and the firm that I worked for did not give me any
insight on this. I'm a younger guy and I haven't done much
consulting work in general and certainly never had any prior
experince with being a W9 employee...but they didn't really
give me much choice in the matter. So is this something I
should take care of immediately or can I file this with my
other W2s? How do I go about filing these taxes with the
state and feds? Is there a form that I can ammend to 1040
for this income or is there a totally seperate process for
filing W2 (taxed income) vs W9 (non-taxed)?

Thanks for the help in advance.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >