can anyone help me?

i'm technically an independent contractor for this company, and basically i'm invoicing them for my hours. i was told that this income had to be reported on 1099 which makes sense, and i had to give them a w-9.

questions:

1) am i exempt from backup withholding in this situation? my Fidelity Investments account is...
2) if #1 is true, do I still have to pay estimated taxes?
3) if #1 is false, how do I go about paying estimated taxes?

i've reported income before on a 1099 (from investments), but never something like this. as always, none of the IRS publications i could find were of any use.

anyone able to help?

thanks, b.

5/21/2007 6:03:51 PM

you give them a w9 with your SS number or Tax ID number. At the end of the year that company should give you a 10-99 for all the work you have billed through them. A 10-99 is kinda like a w2, its a form that shows the previous years earnings except that no taxes are taken out. It is your job to report the 10-99 and pay your share of taxes.

your Fidelity Investments 10-99 will only add to the the amount you owe, you will not be exempt from any tax unless you are full time student.....or mexican

you can either have an accountant do your year end taxes and pay one lump sum, or you can pay quarterly which I recommend



[Edited on May 21, 2007 at 6:57 PM. Reason : 1]

5/21/2007 6:51:50 PM

+1 for quarterly

+1 for accountant for hire. A few weeks ago I got hit with a back taxes bill from 2004-2005 saying I owed the IRS $3000. I hired a accountant and in 3 days she turned it around and it turns out that they owe me over $1000 instead. So my check is in the mail

5/21/2007 9:52:09 PM

Keep records of everything.

Miles driven
Gas expenditures
Business Purchases
Business Travel Expenses

Anything your company does not reimburse you for can most likely be deducted from your taxable income. This will save you money when you are writing the IRS a check in April.

5/22/2007 12:09:09 AM

<---is a full time student.

so i'm exempt from something? awesome. how do i go about claiming this exemption?

oh and Golovko, who's your accountant? i want her.

and they're reimbursing me for just about everything, down to the miles driven and my roadrunner connection at home.

5/22/2007 1:00:28 PM

if you are a full time student and get a 10-99 and have a competent CPA then you wont pay much if any tax....depends on how much you made

5/22/2007 6:13:16 PM