WHO knows TAXES? 1099.... - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
Reply
 
LinkBack Thread Tools
post #1 of 16 (permalink) Old 05-15-2009, 07:19 PM Thread Starter
Le Mans: GT Class
 
Join Date: Sep 2008
Location: Lexington, KY
Posts: 596
WHO knows TAXES? 1099....

Hey guys,

I am working for a detailing shop for $10 an hour. And yes, I get all that 10 an hour. However, I have no tax deductions from my paycheck. That is because it is 1099 pay, and I am a bit confused on what to do. I am a college student and just trying to save money, and this is the first time I have ever received 1099 pay. SO, I talked to some guys at work and said I wouldn't have to pay anything back if I make $600 or under. But I will probably make around $4,500-5,500 this summer since there are no tax deductions. Anyway, WOULD I have to OWE ANYTHING back next year around tax time? I mean, since I am making very little (for the whole year), wouldn't the IRS consider that and not make me pay a lot back? Because I have gotten most of my federal and state back from all my past jobs. OR should I start saving a quarter of my paychecks to pay back? I make around $300 a week, so should I take 50 out of it after the 600 mark (for owing back on taxes)? And how much do you think I will have to owe back if I make around 4500-5500, or even 6000 to be on the safe side? THANKS sorry, I am a tax dummy as my parents have always done it for me since I WAS a dependent, no I'm not.

2007 Merlot SEL 5 speed. 6000k H.I.D. kit/20% tint all around/Smoked sidemarkers/Ford Racing Exhaust Tips/Good Year Eagle GT's 225/50/17/Ford Racing Lowering Springs/KYB "Excel G Struts/Custom Painted red/clear tailights/3D Carbon Front Lip-waiting for paint/more to come..
GO BIG BLUE! (Kentucky Wildcats!) CALIPARI!
5spdSEL52 is offline  
Sponsored Links
Advertisement
 
post #2 of 16 (permalink) Old 05-15-2009, 07:48 PM Thread Starter
Le Mans: GT Class
 
Join Date: Sep 2008
Location: Lexington, KY
Posts: 596
Re: WHO knows TAXES? 1099....

Anyone ? Please! I've been trying to research this, but I still don't get this and if I would have to pay A LOT back or not

2007 Merlot SEL 5 speed. 6000k H.I.D. kit/20% tint all around/Smoked sidemarkers/Ford Racing Exhaust Tips/Good Year Eagle GT's 225/50/17/Ford Racing Lowering Springs/KYB "Excel G Struts/Custom Painted red/clear tailights/3D Carbon Front Lip-waiting for paint/more to come..
GO BIG BLUE! (Kentucky Wildcats!) CALIPARI!
5spdSEL52 is offline  
post #3 of 16 (permalink) Old 05-15-2009, 07:49 PM
F1 Driver
 
Join Date: Aug 2004
Posts: 13,729
Re: WHO knows TAXES? 1099....

You're best bet is probably speak with a CPA in your area. They will know the tax laws the best.
FemGearHead is offline  
post #4 of 16 (permalink) Old 05-15-2009, 07:52 PM
Le Mans: Prototype Class
 
Join Date: Aug 2008
Location: Lake Saint Louis, MO
Posts: 1,543
Send a message via AIM to SkinFlaps
Re: WHO knows TAXES? 1099....

That place might actually be breaking some laws by paying you as an independent contractor. Honestly, I'd find another job because you're going to pay a crap-ton of taxes that way.

Basically, what they're doing is tax evasion.
SkinFlaps is offline  
post #5 of 16 (permalink) Old 05-15-2009, 07:57 PM Thread Starter
Le Mans: GT Class
 
Join Date: Sep 2008
Location: Lexington, KY
Posts: 596
Re: WHO knows TAXES? 1099....

Hm, but I shouldn't be owing back too much, should it? Would W2 pay be better? I'm just confused how 1099 pay works because I got a check today for $245, with 24.5 hours worked. I like the job, and I need money, as it is kind of hard finding a job around here for a college student (sad). But I read on some forum saying for every $3,000 made, have around $500 to pay back. That seem right? So, if i make around 6 grand, I'll probably have to pay a grand back?

2007 Merlot SEL 5 speed. 6000k H.I.D. kit/20% tint all around/Smoked sidemarkers/Ford Racing Exhaust Tips/Good Year Eagle GT's 225/50/17/Ford Racing Lowering Springs/KYB "Excel G Struts/Custom Painted red/clear tailights/3D Carbon Front Lip-waiting for paint/more to come..
GO BIG BLUE! (Kentucky Wildcats!) CALIPARI!
5spdSEL52 is offline  
post #6 of 16 (permalink) Old 05-15-2009, 07:58 PM
F1 Driver
 
Join Date: Aug 2004
Posts: 13,729
Re: WHO knows TAXES? 1099....

Instead of asking questions, speak with someone certified in this area that can assist you. They will put to rest any questions you keep asking.
FemGearHead is offline  
post #7 of 16 (permalink) Old 05-15-2009, 08:01 PM Thread Starter
Le Mans: GT Class
 
Join Date: Sep 2008
Location: Lexington, KY
Posts: 596
Re: WHO knows TAXES? 1099....

I'm just seeing if anyone has knowledge about it on here. I worked for this company last summer, as they gave me W2 pay, now they are doing 1099 pay. Doesn't hurt to seek some advice on the forum . Besides, I wouldn't know who to call anyway. I'm not knowledgeable on anything about taxes nor do I know how to talk about it.

2007 Merlot SEL 5 speed. 6000k H.I.D. kit/20% tint all around/Smoked sidemarkers/Ford Racing Exhaust Tips/Good Year Eagle GT's 225/50/17/Ford Racing Lowering Springs/KYB "Excel G Struts/Custom Painted red/clear tailights/3D Carbon Front Lip-waiting for paint/more to come..
GO BIG BLUE! (Kentucky Wildcats!) CALIPARI!
5spdSEL52 is offline  
post #8 of 16 (permalink) Old 05-15-2009, 08:11 PM
Senior Member
 
john_in_the_lbc's Avatar
 
Join Date: Apr 2006
Location: Long Beach, California
Posts: 31,080
Re: WHO knows TAXES? 1099....

if you only make 6k, you won't owe federal income taxes on much if any of it (you have to consider the standard deduction/personal exemption is subtracted from gross income to get taxable income), assuming nobody is claming you as a dependent.

for state taxes, look at last years tax schedule to see if you would have to pay (your parents should have that). this would only be an estimate of course.

there are many online resources to help you estimate your taxes.
Click the taxcaster link to see what if anything your might owe...
http://turbotax.intuit.com/microsite...ode=3468341816

http://www.answerbag.com/articles/Ho...3-70b8043aecec



2006 Whitewater Pearl Mazda 3 S GT Hatch: Garage Vary Valiant Lip, Grill and Eyelids : Custom JL/Alpine Audio : MazdaSpeed Accessory Springs and Swaybars : JDM MazdaSpeed Strut Bar : Koni Yellows : 5Zigen Pro Racer zr520 : Continental ExtremeContact DW : Buddy Club Condenser : XE Pedals : Black Rays Lugs : HP Tint : Stubby :
My car thread
To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
john_in_the_lbc is offline  
post #9 of 16 (permalink) Old 05-15-2009, 09:26 PM
Senior Member
 
john_in_the_lbc's Avatar
 
Join Date: Apr 2006
Location: Long Beach, California
Posts: 31,080
Re: WHO knows TAXES? 1099....

of course, you should take 10% and put that into long term retirement savings (it's never too early,) and 20% into regular savings before thinking about spending anything.

and matt will need to chime in about the other taxes, like medicare...

2006 Whitewater Pearl Mazda 3 S GT Hatch: Garage Vary Valiant Lip, Grill and Eyelids : Custom JL/Alpine Audio : MazdaSpeed Accessory Springs and Swaybars : JDM MazdaSpeed Strut Bar : Koni Yellows : 5Zigen Pro Racer zr520 : Continental ExtremeContact DW : Buddy Club Condenser : XE Pedals : Black Rays Lugs : HP Tint : Stubby :
My car thread
To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
john_in_the_lbc is offline  
post #10 of 16 (permalink) Old 05-15-2009, 10:12 PM
Senior Member
 
Join Date: Aug 2005
Location: Ellicott City, MD
Posts: 9,451
Re: WHO knows TAXES? 1099....

You will owe payroll taxes (medicare and social security). Since they are paying you as an independent contractor you are on the hook for all of it (with a W-2 you pay half and your employer pays half). So you are going to be on the hook for 15.3% of your pay check for that plus also whatever actual income taxes you owe. If you under pay to much over the year you will be slapped with fines. Contractors I believe have to pay quarterly and they had best do a good job estimating how much they owe per quarter, because the IRS will screw you if you under pay even in a quarter. I think it is if you are off by more then 10% in any given quarter. There is probably a dollar amount as well. Your also going to have boat loads of tax forms to file end of year. Minimum I'd set aside 25% of your pay check end of year for payroll, state and federal taxes plus possible penalties for under payment.

In this case it does sound like the detailing shop should not be paying you as an independent contractor. Sounds shady as hell. I'd talk to a CPA minimum before accepting it.

Honestly, the pay doesn't sound like much once you take in to account everything you are on the hook for and all of the work you are going to have to do to file. I'd just get a regular $7 or $8 an hour job and you'll likely make as much money in the end. Look for a job somewhere like Borders or Barnes and Nobel, they pay fairly well.
-Matt
azazel1024 is offline  
Sponsored Links
Advertisement
 
Reply

  FMVperformance.com : The site for all your Ford Mazda and Volvo needs > Misc > Lounge

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the FMVperformance.com : The site for all your Ford Mazda and Volvo needs forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome