1099 or W2

1099 lease in Cali is now a no go since the Gov outlawed it a couple weeks ago. Only in Cali, not the other 49 states.

 

Last year when Trump plan started.

 

If your a company drive only way to get Per Diem is if the company will pay part of your paycheck as Per Diem. Their is no section on the tax returns to claim it, unless your O/O. That was part of tax changed Trump made with the new simple tax returns forms

 

The 1099 trap is what I call it .....your pay had better be at least 20% more than a w2 wage and you better be good at withholding and paying uncle sugar on time.
I have a couple drivers that dug themselves into very big hole after a few 1099 years and can't seem to find a way out

 

Report 1099 employee carriers you get 10% of what Uncle Sam collects for tax fraud.

 

I'm in that mess.

 

You ever find that job you were looking for a while back

 

For you guys in the 1099 tax trap, the IRS will work with you to set-up a payment plan.

You can either work with them directly, or you can contact a good CPA or an Enrolled Agent. Enrolled Agents work directly with IRS.

Using either option, before you can begin to negotiate you will need to summarize all of your current business and personal expenses as any payment plan will be based on cost of living standards for your specific zip code.

Your individual situation will impact any payment plan. Also, once a payment plan is in place, you must timely file all future tax returns and pay all future tax balances due.

The best advice that I can give you is to work it out sooner rather than later. And, keep good records of allowable expenses and each month set aside enough money to pay your quarterly taxes.

Your CPA, Enrolled Agent, or other QUALIFIED tax expert can provide you with a worksheet to use in tracking your expense.

PS - Many OO’s that go through this process soon realize that after expenses, a large annual gross income number does not always result in a large annual personal income.

 

play it safe, get a W-2 job, and the workman's comp and any other possible benefits. the headaches of putting money to the side to pay your quarterly taxes and your med bills if you get injured just aren't worth it.

also, if i recall, we have had a few people on this site claiming they worked for a 1099 company, and had no proof of this for the next employer.

avoid the headaches, get a real job, that the employer pays the taxes (as well as any taken out form your checks as well)