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Financial Planning / Tax Strategies


Subject:  Re: W2 or 1099 Date:  9/30/2004  10:29 PM
Author:  Fletch52 Number:  73564 of 127613

RJB: giving you a 1099 is better for the hospital but not necessarily for you. No income tax has been deducted from your pay so you will have to come up with that money at tax time. Also you will pay more social security taxes as you are self employed now. The one thing in your favour is being self-employed gives you an opportunity to deduct certain expenses related to work that an employee cannot deduct.

Keep your receipts and also keep a log book for mileage for your car. You may not be able to claim mileage but in any case it is better to have the information ready just in case.

If you are earning enough money you may have to consider making estimated payments. The government wants their tax money contributed evenly throughout the year and if they are not getting it from payroll taxes you should be contributing it through estimated taxes.

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