54

Whether or not you owe state income tax is determined by state residency rules. Say you work remotely for a company in Texas (no income tax state) but you spend all of your non-liesure time in NY, the office you keep is in NY, you receive your mail in NY, NY wants income tax from you because you are a resident. Now say the company you work for that's based ...


28

On the IRS page that you linked, in the “Other Items You May Find Useful” section, there is a link that says: All Form 1099-MISC Revisions You’ll find the 2017 Form 1099-MISC there.


20

Careful. I would personally need a LOT more than $5 more per hour to go from W-2 employment to 1099 employment. It boils down to two reasons: (1) employers pay a huge amount of taxes on behalf of their employees, and (2) you would have to pay all of your own withholding up front. Your current proposal from them doesn't account for that. There are also ...


18

Yes, you must report it. I believe the cutoff is $0.49 or less (yes, 49 cents). From the TurboTax site itself: If I received less than $10 of interest from my credit union, do I need to declare it? It looks like they are not required to send out a form unless it is over $10. The credit union is not required to send a form if the amount is less ...


17

First let me say, I AM NOT AN ACCOUNTANT! And you should talk to one. They're really great, and they save you a ton of money. For instance, I'm a mobile app developer based in NYC. I was in a similar situation: whenever I did freelance work, I got a 1099, on which I was taxed like crazy. My accountant had me incorporate a DE as an S-Corp which I owned ...


13

Since the current form of the question asks about moving to another state, yes, that's really probably your best option, provided that state is not something like California or Massachusetts. States with No State Income Tax There are several U.S. states that have no state individual income tax on salaries and wages. Currently, those are: Alaska Florida ...


11

In general that's illegal. If you're a W2 employee, you don't miraculously become a 1099 contractor just because they pay you more. If your job doesn't change - then your status doesn't change just because they give you a raise. They can be sued (by you, and by the IRS) for that. Other issues have already been raised by other respondents, just wanted to ...


11

Forms 1099 and W2 are mutually exclusive. Employers file both, not the employees. 1099 is filed for contractors, W2 is filed for employees. These terms are defined in the tax code, and you may very well be employee, even though your employer pays you as a contractor and issues 1099. You may complain to the IRS if this is the case, and have them explain the ...


11

There are many famous people who enjoy New York City, but do not enjoy the taxes. Many people commute to the city from Connecticut, New Jersey, or even further away. If you live in another state but commute to the city for work, you will still incur tax liability. If you move away and visit the city only for leisure or occasional work, you can reduce your ...


10

In general the W2 employee will also get some benefits: Holidays, sick/vacation, insurance, 401K (which might include matching). the company also covers the employer portion of social security. The 1099 will get X dollars an hour for every hour they can bill up the the maximum number of hours they are allowed to bill. They get zero benefits. The individual ...


9

IRS doesn't require 1099 to be filed for payments of less than $10. It is, however, taxable income. The fact that 1099 wasn't filed with the IRS doesn't affect your tax liabilities. If for example you have a private loan (say to a family member) and get paid interest on it, the payer will also probably not file 1099-INT with the IRS. However the interest ...


9

Jane should report $16,000 as income and an $8,000 expense to Sally, which will match the 1099 she will issue for Sally.


8

according to this presentation (page 13) The current ruling is that you DO NOT have to pay the SE taxes. Here is a link to the actual IRS ruling. I would suggest manually entering the amount in the other income line of form 1040 (line 21) with FELLOWSHIP as the explanation, but perhaps someone else has a better solution.


8

Yes, you can. See the instructions for line 29 of form 1040. Self employed health insurance premiums are an "above the line" deduction.


8

If you're using cash accounting (which you are; you'd have to elect accrual, and that would come after a long discussion with your accountant) you include income when it's received and you take deductions when they occur. So, yes, you pay 2017 taxes on the money you received in 2017. And you deduct expenses for that project when you pay for them. With cash ...


8

This may not be entirely up to you and your employer. The IRS has rules that classify a job as employment (W-2) or independent contract work (1099) based on facts of how the job is performed and supervised. If you want a particular type of income, you may need to structure the substantive work arrangements accordingly. That said, the IRS seems mainly ...


7

Your clients should not send you 1099-MISC if they paid with a credit card. You can refer them to this text in the instructions for the form 1099-MISC: Payments made with a credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K by the payment settlement entity under ...


7

It's the employer's job to get the 1099-MISC to you. They should have asked you to fill out a W-9, which would give them your SSN or TIN so that they could file the 1099-MISC if they needed to. They should have gotten this from you before they paid you a dime. Now they're late. You should have received it by the end of January. As the person receiving ...


7

The contract he wants me to sign states I'll receive my monthly stipend (if that is the right word) as a 1099 contractor. The right word is guaranteed payment, which is what "salary" is called when a partner is working for a partnership she's a partner in. Which is exactly the case in your situation. 1099 is not the right form to report this, the ...


7

If one looks at the "Guide to Information Returns" in the Form 1099 General Instructions (the instructions that the IRS provides to companies on how to fill out 1099 and other forms), it says that the 1099-B is due to recipient by February 15, with a footnote that says "The due date is March 15 for reporting by trustees and middlemen of WHFITs." I doubt that ...


6

If this is a tax-deferred account you shouldn't be getting 1099 at all unless you withdrew something from it. Call the company and ask them why they sent it to you.


6

Generally, the person listed "first" on the account is the person considered to receive the interest on the account, and is the one that the bank issues the 1099-INT to. (See "SSN for joint account" in Publication 550.) For more specific details about your account, you could contact the bank and they could let you know which person is the "primary" person. ...


6

In addition to what Brick notes - particularly, the 15.3% that goes to FICA/Medicare - if you're in the 25% bracket before your 1099 income hits, so > $75,600 this year for Married Filing Jointly, you're also in the area where you start losing deductions and credits. For example, if your combined income were $95,000 before your 1099, and then you earned $20,...


6

You don't need a tax ID number from a 1099-INT to file on paper or via Free File Fillable Forms, so I'm a bit surprised that there's tax software that requires it somehow. It sounds like your issue is really more one of using the Credit Karma tax software, and their support is going to be more helpful with that than anything anybody here can do. In general, ...


6

Being audited is probably not as bad a thing as I think it is, but it's also not the first option that the IRS uses when they find a mistake. Often when a form is missing, the IRS will send a letter with a proposed change to your taxes. They will make the correction to your form, and you can either respond to that letter with a check (if you owe money) or ...


6

Some states have no STATE income tax. But you still have to pay FEDERAL income tax. New York State income tax rates range from 4% to 8.82% of your income, so eliminating that could make a significant difference to your take-home pay. But sorry, you are still subject to federal income tax if you live in any of the 50 states. States with no income tax often ...


5

The instructions for Form 1040 Line 7 say that you should include: Scholarship and fellowship grants not reported on Form W-2. Also, enter “SCH” and the amount on the dotted line next to line 7. However, if you were a degree candidate, include on line 7 only the amounts you used for expenses other than tuition and course-related expenses. For ...


5

Your "money market" is cash or a "sweep account" that your broker is holding for you and on which the broker is paying you interest. The mutual fund is paying you dividends, not interest, even if it is a money-market mutual fund (often bearing a name such as Prime Reserve Fund) or bond mutual fund that is collecting interest on its investments and passing ...


5

It seems that you think you are freelancing, and they think you are an employee. What's bad for you, the tax office will also think you are an employee if they withhold tax for you. Alternatively, they think you are stupid, and they keep the money, but are actually not paying it to the tax office at all, in which case you will have a bad surprise when you do ...


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