If you are working as a freelancer / contractor you should get a 1099 each year. I think the government becomes aware when they get the 1099 the year after your earnings.
Several gotchas
1) you will pay 15.3% for social security / medicare because you are the employer and the employee.
2) you may be required to make periodic tax and social security / medicare deposits or based on how much you make you might only be required to pay when filing your taxes.
I prefer depositing what I owe monthly. I think this is the website that you can go to, set up an account, and make your payments: https://www.eftps.gov/eftps/ (it has been a while) I prefer depositing monthly because I do not want to have a dry spell and then owe taxes as well. I even over pay so I get a refund. You do not want to owe $2000 .... $6,000 or more at the end of the year and not have it.
You should read https://www.eftps.gov/eftps/ contact the IRS with any questions (be prepared for a long wait time) and talk to an accountant.
As someone said, as a 1099 you can deduct a number of things you normally do not such as your cellular phone, use of home, hardware and software purchases, internet costs, office expenses.... etc. Check with your accountant.
Be very careful... you do not want to get into a snag.
On 2019-05-29 06:58, Michael wrote:
thanks
On Wed, May 29, 2019 at 9:54 AM Andrew McRobb <andrewmcrobb@gmail.com> wrote:Got it. That I'm not sure about since that's kind of a grey area in my book. Idk if someone on here can chime in on that, or maybe a question for a accountant somewhere. Just dont want to give you false information.
---------------------------------------------------On Wed, May 29, 2019, 6:50 AM Michael <bmike1@gmail.com> wrote:oh I was going to pay my taxes I was just hoping I could say I earned it in July rather than june.
On Wed, May 29, 2019 at 9:45 AM Andrew McRobb <andrewmcrobb@gmail.com> wrote:Also before I forget. Good thing about 1099 is you can deduct a lot of things to not pay so much. E.g: Gas to get to work, supplies, etc...
---------------------------------------------------On Wed, May 29, 2019, 6:43 AM Andrew McRobb <andrewmcrobb@gmail.com> wrote:Yes, you still have to report your earnings and pay taxes and I would assume the feds would get idea how much you make on your employers bank account statment. I wouldn't mess around not paying taxes, it could very much royally bite you in the butt by the IRS down the road.I suggest asking around for a good tax accountant to help you with this.
On Wed, May 29, 2019, 6:11 AM Michael <bmike1@gmail.com> wrote:I might get a 1099 job. How does the company report my earnings to the government? Is it reported yearly or monthly or is it something I have to do? Meaning the feds have no idea when you made it just that you made it..... when do they know it though?---------------------------------------------------
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