1099 Contractor

You pay out on a 1099 you don't get a return

 

Technically it is possible. By way of example, say you make 35k per year, and between your work deductions and the number of dependents you have you reduce your taxable income down to 0. That is certainly possible. Then, between the EITC (which would be high at that income level) and the Child Tax Credit you could get a pretty heft tax return, assuming you have a fair number of kids.

You would have to pay out on things like SS, however, and you would get much more money on a W2 form then you do on a 1099, because on the 1099 you are paying out the employer side of the taxes as well, and those can't be done away with through deductions and credits the way federal income tax can.

 

I guess in theory it is possible. But either way a 1099 contractor is paying more tax than a w2 employee. Or at least getting a smaller refund then a w2 employee in the same financial situation.

 

Your boss does not pay any tax for you if you are 1099, that's the whole point of 1099, you are responsible for EVERYTHING, tax, unemployment, workman's comp, social security........

 

The only thing im responsible for is a small amount of ssi workmen comp is my employer problem and im not worried about unemployment because there are plenty of trucking jobs

 

You are not getting it, on a 1099 you do not legally have an employer, you are not ab employee of a company. You are an independent contractor and therefore legally work for yourself

 

Ssi is roughly 13% of your income if you are filling it out correctly. Workman's comp is not required(I think) if it's just you but you are your own employer so no, your boss isn't paying that. The point is that you are not doing better on a 1099 than you would on a w2 unless you are committing tax fraud.

 

Well i will say this i make good money im home every night the truck i drive has no problems im alot happier driving for a 2 truck company then i ever was with a bigger company

 

Some people will never get it...

 

An employer is any one who pays you