1099

[tucker]

how does 1099 works? vendor gadu 1099 misa pay chesthe taxes ala pay cheyali?

 

pros/cons?

[boeing747]

3 minutes ago, tucker said:

how does 1099 works? vendor gadu 1099 misa pay chesthe taxes ala pay cheyali?

 

pros/cons?

 

you will get the full amount as salary and end of the year nuvve pay cheyali taxes using the 1099-Misc form.

[tucker]

19 minutes ago, boeing747 said:

 

you will get the full amount as salary and end of the year nuvve pay cheyali taxes using the 1099-Misc form.

ila chestha do we end up paying more taxes?? 1099 run avalante edina company mandatory ga undala (like employer) or individual ga undochha?

[ekunadam_enkanna]

38 minutes ago, tucker said:

how does 1099 works? vendor gadu 1099 misa pay chesthe taxes ala pay cheyali?

 

pros/cons?

1099-MISC: the issuer will send a copy to IRS, another to you. 

You can write off expenses: health insurance, home office, tolls, travel (to goa, bangkok, paris honeymoon), etc.  Now you need to pay 15.x percent social/medicare tax on whatever left after all all deductions. On top of it, you need to pay income tax.

On W2, you are just paying 7.6% medicare/social tax. On 1099, you are playing the role of both the employer and the employee, so you need to pay the (hidden) employer share of 7.6% taxes.

[boeing747]

27 minutes ago, tucker said:

ila chestha do we end up paying more taxes?? 1099 run avalante edina company mandatory ga undala (like employer) or individual ga undochha?

if you have expenses to show, then its beneficial..friend okadu chestadu ila, he puts internet, home office, car expenses and even some restaurant visits as official expenses in the 1099 misc