Contract Working - 1099

[eques]

I've recently submitted a project proposal in which I will most likely be paid via 1099.  Yup, I get to provide all my own taxes, including that nice 15% for the Socialist Security Administration... but at least NH doesn't (yet) require taxes from 1099 work... do they?

What can I do to reduce my overall tax burden (short of simply not paying)?  I know I can put off paying taxes for about a year, but I'd still like that number to be lower if at all possible.

[error]

The best way, of course, is simply to not get a 1099.

Beyond that, if you actually want to pay, you're probably talking to the wrong people.

[eques]

The best way, of course, is simply to not get a 1099.

Beyond that, if you actually want to pay, you're probably talking to the wrong people.

I don't think I can specifically avoid a 1099.

And it's not so much "wanting to pay" as it is "putting up with the inconvenience while I climb out of the hole I dug myself into".  While it would be quicker without the monkey on my back, that monkey's got a gun.

I could potentially just not file, in which case, problem solved--sort of.

Maybe I'll join the ranks of the tax-protestors for tax year 2007. 

[error]

Tax protesters? Where? I don't see any tax protesters.

[Rosie the Riveter]

If you plan to file --

Save every receipt related to the 1099 work and write it off...

http://content.salary.monster.com/articles/deductible_expenses/

[cathleeninnh]

Being a freelance paralegal, my daughter expected 1099s from all the lawyers she did work for. Fully half never bother. Made her happy.

Cathleen

[Rosie the Riveter]

Another tid-bit -- Companies only "have" to report 1099s if they are more than $600.

[Rosie the Riveter]

The best way, of course, is simply to not get a 1099.

Beyond that, if you actually want to pay, you're probably talking to the wrong people.

Love Ya, error....

Unfortunatly, I am probably the "right" person to talk to....I know quite a bit about taxes and other small business nonsense. 

[eques]

Another tid-bit -- Companies only "have" to report 1099s if they are more than $600.

Well, unless they want to give me more than 10 separate payments for the same project...

[Rosie the Riveter]

Another tid-bit -- Companies only "have" to report 1099s if they are more than $600.

Well, unless they want to give me more than 10 separate payments for the same project...

I'm glad that's not going to help you...Your $$$$ sound better... Just start a file and stick in everything that is "work" related. Computers, internet access, travel, clothing, entertaining your customers, etc.... and take your taxes to a good accountant.

[error]

The best way, of course, is simply to not get a 1099.

Beyond that, if you actually want to pay, you're probably talking to the wrong people.

Love Ya, error....

Unfortunatly, I am probably the "right" person to talk to....I know quite a bit about taxes and other small business nonsense. 

Oh, what a terrible burden to carry, to have all that nonsense taking up space in your head!

[Rosie the Riveter]

The best way, of course, is simply to not get a 1099.

Beyond that, if you actually want to pay, you're probably talking to the wrong people.

Love Ya, error....

Unfortunatly, I am probably the "right" person to talk to....I know quite a bit about taxes and other small business nonsense. 

Oh, what a terrible burden to carry, to have all that nonsense taking up space in your head!

LOL -- precisely 

[eques]

Tax protesters? Where? I don't see any tax protesters.

Er, I saw the IRS's definition of "tax protester" again.

Uh... I highly doubt I would file and not pay.  It would be called (at least!) "not filing." 

[eques]

Another tid-bit -- Companies only "have" to report 1099s if they are more than $600.

Well, unless they want to give me more than 10 separate payments for the same project...

I'm glad that's not going to help you...Your $$$$ sound better... Just start a file and stick in everything that is "work" related. Computers, internet access, travel, clothing, entertaining your customers, etc.... and take your taxes to a good accountant.

Okay... I'm not sure exactly how I'll do this, though, because if the article from monster.com linked above is at all accurate, I don't see anything that will be accepted as "deductible" for these particular contracts I'm referring to.

[error]

If you aren't operating your business at a loss, you aren't doing something right.