filing taxes with a 1099
I am looking at a job running for an owner operator that has several trucks leased onto a company. He is a contractor for said company so i suppose i would be a sub contractor for him...I'm not to crazy about having to keep up with my own taxes like that and not even sure how that whole deal works. Seems like a good job but i dont like that part....how does the whole 1099 deal work when you are contracted out under an owner?
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You can hide more expenses and pay less tax :lol:
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Re: filing taxes with a 1099
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True. Your self employment tax will be double what you'd be paying if you were an employee.
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Thats the thing i am kinda confused with.. He has the trucks leased onto the company. I will be driving his truck but i have to fill out the companies application and go through their orientation. In a sense its like I would work for that company but drive his trucks. The higher tax burden was something i thought i had heard before. I am just not sure how that whole deal works. Not sure if i am crazy about the idea....I was kinda confused on how i could be a contractor when all I am doing is driving his stuff. Seems like an all around good job except for that fact. He pays good percentage and its home every day...but that 1099 thing, i just dont think i like it.
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You'd have to get an earnings prospectie to see if its worth in at tax time. If you make much more than a company driver, the higher tax rate could equal out at some point and start working o your advantage.
What does this said carrier pay, and what is he paying? |
well he pays 50% of revenue to the truck after fuel. He showed me a pretty good stack of pay statements and all showing what the truck was grossing before and after fuel. It looked like for the most part I would take anywhere from 800 to 1000 a week .....before our lovely government gets its cut. That number sounded pretty good to me until he mentioned the 1099 deal. I talked to him on the phone for a bit then went out to his place to grab the application and thats when he popped that 1099 on me. Not sure if i want that trouble.
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At 50K a year, expect to pay 25-30% in income taxes. I'm sure someone else here can give you a better approximation. But on my generic model, you'd be clearing 35 a year. Havig a house, dependents, kids, etc can change that for the better.
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I think we could start the first CAD pissing match on who made less last year :lol: :lol:
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