1099 tax forms

[Mikeygun]

do we have any accountants on this board?....im trying to find out what type of benefits you can claim if you get paid on a 1099 tax form....is it true that you can claim anything from haircuts to food to leasing a car even?.....im asking because i was offered a position where they would pay me on a 1099 and wanted to learn a little more about it. Also would you give up a stable $35k job for a job where you work on only comission but you have the opportunity to make over $100k a year?

 

[Parabellum]

All I know about 1099's is that you are responsible to pay for taxes.

 

[fogg88]

Also would you give up a stable $35k job for a job where you work on only comission but you have the opportunity to make over $100k a year?

What would the job entail selling? In this current economy, you better have a real gift for sales, or else you're going to have a hard time parting people and their money.

 

[primetime21]

car, travel, gas, computer, internet connect.....

Its pretty broad. Would you be getting a w2?

 

[HumorMe]

car, travel, gas, computer, internet connect.....

Its pretty broad. Would you be getting a w2?

I think the 1099 form would serve as his income report and a W-2 wouldn't be filed on him.

I mail out W-2 forms and 1099 forms each year. I was always under the impression a W-2 would be for reporting income plus taxes withheld and the 1099 form would be for reporting earned income without taxes withheld.

My CPA always handle all of my accounting, so I could be wrong which would probably be par for the course!

Getting back to the question, I don't really know if there are any benefits regarding 1099 and W-2 forms. You can subtract any business related expenses you might incur during the year, including the above mentioned.

If you are a hell of a salesman, I say take the commission job. If you are not a good salesman, you will starve.

 

[powerslave]

I'm an accountant, but I don't do taxes. If I recall from my own personal experiences and tax classes. I don't think there is any benefit. You still have to file 1040, 1040A or 1040EZ. Seems to me it would be more of a pain in the ass. You would need to keep every single (business related) receipt. Also, instead of your employer witholding tax, you have to pay. Including social security, etc.

 

[Mikeygun]

its a job selling mortgages...i have the same type of job now but its mostly selling personal, car and boat loans. Few mortgages....this company that gave me the offer has very competitive rates so i figured it would be too difficult selling 4 mortgages a month ( and thats low balling it). I think that i would only be getting paid on a 1099 thats y im trying to find out all the benefits. The way i see it i can lease a brand new car and write it off as a business ecpense, all the food i eat, clothes i buy and some other misc. things. From what i understand if i make 100k(hypothetically) and i spend 30k on expenses then i would only be taxed on the 70k right?....any other benegits you guys know of?

 

[Mr.X]

Depending on the 1099 that you want to use...
Form 1099–B, “Proceeds From Broker and Barter Exchange Transactions”
Form 1099–DIV, “Dividends and Distributions”
Form 1099–G, “Certain Government and Qualified State Tuition Program Payments”
Form 1099–INT, “Interest Income”
Form 1099–MISC, “Miscellaneous Income”
Form 1099–OID, “Original Issue Discount”
Form 1099–R, “Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.”
Form SSA–1099, “Social Security Benefit Statement”
Form RRB–1099, “Payments by the Railroad Retirement Board”

depending on your inflow and outflow of cash, I would suggest going to a CPA b/c I don't do online suggestions as an out of state CPA.

Mr.X