1099 help

[username17]

Hi,

I live in Vermont, and have been working for a start-up here.

I've just been reciving straight checks from my employers checking account.

I understand that by definition i'm a contractor.... and will have to pay taxes thru a 1099 of sorts.

My question is:

-Don't I need to report income quarterly to pay taxes to avoid a penalty.
-Do I need anything from my employer to do this?
-What about a Vermont State taxes?

Thanks!

 

[Zigner]

Hi,

I live in Vermont, and have been working for a start-up here.

I've just been reciving straight checks from my employers checking account.

I understand that by definition i'm a contractor.... and will have to pay taxes thru a 1099 of sorts.

My question is:

-Don't I need to report income quarterly to pay taxes to avoid a penalty.
-Do I need anything from my employer to do this?
-What about a Vermont State taxes?

Thanks!

Let's work on your employment status. What, exactly, are your job duties?

 

[adjusterjack]

Don't I need to report income quarterly to pay taxes to avoid a penalty.

Yes.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Do I need anything from my employer to do this?

No. But I hope you make copies of the checks before you cash them.

What about a Vermont State taxes?

The state income tax website will tell you all you need to know:

https://tax.vermont.gov/individuals

I understand that by definition i'm a contractor

Maybe yes, maybe no. Answer Zigner's question and let's look into that.

 

[Taxing Matters]

Hi,

I live in Vermont, and have been working for a start-up here.

I've just been reciving straight checks from my employers checking account.

I understand that by definition i'm a contractor.... and will have to pay taxes thru a 1099 of sorts.

The first issue is whether the employer is properly treating you as an independent contractor. If you are actually an employee then the law requires the employer to treat you like an employee; it's not optional. An employer always has the choice to treat an independent contractor as an employee, but the employer does not get the choice to do it the other way around. For federal tax purposes, the factors that are used to determine if you are an employee are explained in IRS publication 15-A.

Don't I need to report income quarterly to pay taxes to avoid a penalty.

No. You only report your income when you file your income tax return after the tax year closes. But what you may need to do is make payments toward the tax you'll owe for the year. Those payments are not make quarterly, strictly speaking, but are made four times a year. IRS Form 1010-ES explains how to compute how much to send in and provides the payment coupons you need. See also IRS Publication 505.

Do I need anything from my employer to do this?

No, but it's very important that you keep a good record of your income and business expenses so you can complete an accurate return and be able to prove it should the IRS audit you. IRS Publication 583 covers that.

-What about a Vermont State taxes?

Vermont also requires estimated tax payments if you don't have withholding from the job to cover what you'll owe. Form IN-114 is used for that, and the instructions (such as they are, they aren't much) explain what is required.[/QUOTE]

 

[username17]

You are all awesome. Thanks so much!

 

[username17]

I know that I'm a contractor. Should I have filled out an I-9 at some point?

 

[Taxing Matters]

I know that I'm a contractor. Should I have filled out an I-9 at some point?

If you are an independent contractor, then no. Employers need to ensure that their workers are eligible to work in the U.S., and they use Form I-9 for that.

 

[LdiJ]

If you are an independent contractor, then no. Employers need to ensure that their workers are eligible to work in the U.S., and they use Form I-9 for that.

However, there is also a W-9 which contractors normally are required to provide to the companies that pay them, and if you meant W-9 when you said I-9 then yes, you do need to fill out a W-9 and give it to the company.

How do you know that you are a contractor? You never did answer the question about what you do for the company.