Am I an independent contractor ? 1099 ?

Follow all of big johns advice . If you plan on doing your own taxes i recomend using turbo tax

 

What is the wiggle room you think is there?

You will have no deductible expenses toward the income.

 

What you said is how they are looking at it. I believe they are incorrect. That doesn't really matter if you want to work for them and accept the situation.

Be sure to save reciepts for anything you purchase that might be work related. As an independent contractor you can deduct much more than an employee can.

I wouldn't necessarily recommend H & R Block, but you should call them and tell them you are looking at an independent contractor position and need some information. They will give you some free information on what you should do on quarterly taxes and what might be deductable. They do this in hopes of getting your business.

Good luck.

 

I do not believe so.

He is just a driver and not really over the road. So many expenses will not be allowed.

 

I would very specifically recommend NOT TO USE any of those "tax x-spurt during the season" places. Get yourself a DECENT tax person, usually found in a CPA's office.

 

1. You get to pay a 7.65 % self employment tax. Combined SS & medicare

2. You have no workmans comp benefits

3. You have no access to group health insurance.

4. You never qualify for unemployment benefits

I'm sure others can think of some other advantages.

 

The IRS web site has a 7 or 11 point test for determining if someone is an employee or IC. It's not trucking specific.

Also, calling and asking the IRS is not an answer, at least according to the IRS. The IRS answer on the phone is wrong by IRS opinion about 30% of the time. A written opinion from the IRS holds water but takes time to get.

As long as the taxes are paid in the amount the IRS determines is required it's the employer that is at risk from a wrong employee/IC determination.

I've gotten into trouble before trucking because the company said I was a 1099 employee and they were wrong. Too many drivers I meet that are 1099 or consider 1099 work think it's a way to get paid more, since no taxes are withheld, or it is a way to avoid taxes. It's not. If you have to sell crack or rob banks, do it, but make sure you pay every last cent the IRS says you owe.

 

All of those things are available to you at market prices and a W-2 doesn't magically reduce the cost to you or make it any better. The magic is that you never see the money that paid for those things on your pay stub, even though you earned it.

The truth is that the majority of the working public is too irresponsible to spend their own money on something that's so not fun like insurance, tax deposits, or savings. But take it out a week at a time as withholding and wrap the rest up as a "benefit package" and most people don't know what they're missing. It's free stuff plus you get paid at tax time!

The one thing you get as a contractor is a clear line of sight on what you earn and what those benefits cost because there's no shell game going on with your pay stub. What you see is what you get.