Independent contractor and 1099

With one really minor error all these replies are right on and I agree with them. I have worked as a private contractor. If you are willing to take the chance with the dangers pointed out in post #7 it is possible to make some serious money. I am not a supporter of truck drivers being private contractors though, even though there are some fringe aspects of this industry where it makes good sense. I will just add to all the other things posted the issues with capped deductions. When I was getting 1099s I had so many deductions my taxable income was so low I barely paid taxes, can't do this today as easy as it was then.

 

If she has a wreck, is she liable?

 

When I was doing 1099 work I was operating under the company DOT authority as well as their insurance. I never had an accident so I can't relate any actual experience on this. All I know is I was forced to maintain an escrow account that I lost if at fault that covered the insurance deductible. From what I understand this is how most 1099 operations operate.

 

She. Yes.

 

Good choice. Let us know how things work out for you.

 

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I tried the Expediter Van thing under an owner operator getting paid as a 1099. I didn't like it and eventually got out of it, though it was interesting to try OTR in a Van.

I considered saving up for my own van which would be a more fair situation, but decided not to mess with the extra accounting and expenses.

 

I dont know any drivers that arent 1099. In middle TN it seems youre at a mega or a 1099.

Edit i take that back. My neighbor is ltl food delivery on w2. He leaves at 2am daily Sun-thurs, in bed by 7pm. I cant do that schedule.

 

It depends on the company. I've worked for 2 1099 companies. I hit a deer with one company, and I was charged 2500 dollars for the deductible. I took it up the rear, because I had to do what I had to do to get back on the right track. First chance i had to get out, I did.....with my running shoes on. Real talk, because of these types of shenanigans, I am glad the AB5 law has broken ground.

 

AB5 is an abomination … the situation the OP and you were involved in is already illegal under IRS rules. AB5 wasn't needed here, just enforcement of existing law.

What AB5 does is make contracting - any contracting - illegal. And AB5 is probably in violation of the Constitution.