W-9 question

[disneymarie]

So after being on unemployment for 18 months, and only earning $2,800 or so last yearworking field investigation work, I was hired part time recently for a new company.
I have my PI license and was hired for skip tracing and taking statments. But I do not understand anything except norm stuff on taxes.

But, I did not get a W-4 for tax exemptions I had a W-9. Does this mean that I will have a 1099 and have to pay all my own taxes. I make more in one day then I did for a week in UC, working for them pt time. But, did not want to ask a dumb question about the W-9. I never ran across this in work before.

My first check for pay and cost comes tomorrow.
DH can retire in May, he lost his job last year and is able to help me with the work too. On the weekends he does security. It helps that when he retires our 14 yr old will be carried on his S/S. She will receive half of what he is getting. We will be back up to our pay scale if I keep getting two days a week of work.
thanks for the info
Di

 

[jmartinez1895]

I would first off recomend using a tax program like Turbo Tax, it elped us out A LOT and it will walk you through your stuff. I think you can try it our for free on the web site and only pay when you are ready to file.
As for paying your own taxes, from what I understand, you must file and pay your own if your employer dosen't with hold and if you are freelance then you have to keep up with it all yourslef.

 

[Justsyd2]

"I did not get a W-4 for tax exemptions I had a W-9. Does this mean that I will have a 1099 and have to pay all my own taxes.

Yes, that's correct. Be sure to save all work related receipts so that you can claim any job expenses, and keep a record of your mileage.

 

[disneymarie]

UGH I am no good at the money, book-keeping, no wonder the pay rate was double my last job.
I guess there must be a software I can keep track of my cost and then transfer to turbo.

It won't affect this year, but need to start right now for next year.
Thanks,

 

[jmartinez1895]

Quicken Quick Books is good I have heard.

 

[Arielle22]

If you are an independent contractor you will have to pay both your portion of social security and medicare as well as the portion the company would pay if you were an employee.

 

[Kathi OD]

UGH I am no good at the money, book-keeping, no wonder the pay rate was double my last job.
I guess there must be a software I can keep track of my cost and then transfer to turbo.

It won't affect this year, but need to start right now for next year.
Thanks,

JMartinez suggestion for Quick Books is spot on. You can import your info from Quick Books to Turbo Tax next year when it is time to do your taxes.

Just have to make sure to input the info into Quick Books as the year goes on.

Congrats on the job!

 

[disneymarie]

If you are an independent contractor you will have to pay both your portion of social security and medicare as well as the portion the company would pay if you were an employee.

Thats what I was afraid of. step daughter had to do that with her theater pay....

I am a hands on person, not a numbers type. I check online everyday for the banking as the check book would never balance. I HATE math.

I quess Quicken would not help me pay the SS and medicare etc. Something I can plug the pay into and tell me what goes where and then send it out?

I have do bill paying online because I hate writing checks out..Actually auto pay, memory sucks.Actually it is stress overload in my life.

 

[bumbershoot]

Do you have anyone who could keep track of these things for you? It's going to be important; when I had my own business, I never got myself set up to pay taxes quarterly, and it REALLY hurt me come taxtime. I had to really stretch myself to get the money to pay my taxes.

How about the 14 year old? Is she very smart and good with numbers? When I was around 11 I read through the tax books and did my mom's taxes that year, did them well, too. She wasn't self-employed, but still.

There's got to be someone around who can help you...

You have your state and city's business licenses, yes? Those licenses will require tax forms too (though it's possible/probable that the amount you'll make won't require you to PAY anything to them...but you do have to file the forms).

 

[Kay1]

Maybe OT, DisneyMarie, but congrats on your new job, and what an interesting job. I don't know if you've read the Stephanie Plum novels, but this would be a fun time to start. I think the first is "One for the Money." They're all by Janet Evanovich and Stephanie has the same job as you.

 

[pklein09]

My dad is a realtor, and has to track mileage. He keeps a date book in the car and jots down his starting and ending mileage everytime he goes out for job-related stuff. You could also stash receipts in there as well. Good luck!

 

[AmyinKY]

Congrats on the new job.

When you itemize, your accountancy cost are deductible. Start today with a notebook and write down your milage, any job related costs, gas, etc. in your notebook. Maybe if you set it up by job instead of by day that would help you to remember. When you have some cash flow, contact an accountant. Show them what you are doing and ask your questions then. You will be amazed at what can be written off or depreciated when you are your own boss.

 

[disneymarie]

Maybe OT, DisneyMarie, but congrats on your new job, and what an interesting job. I don't know if you've read the Stephanie Plum novels, but this would be a fun time to start. I think the first is "One for the Money." They're all by Janet Evanovich and Stephanie has the same job as you.

Thank you all for the tips. I can't believe in two weeks how many hours and miles I already accumulated! I will start the book,
I so wish I could have someone to take the load somewhere somehow. I am the glue for my family.

I will look for the books, they sound interesting, I started reading Nancy Drew where I was young. I began as a hairstylist with my own Salon at 17 yrs old. Had a salon in my home as I reared my children and went to Jr. College.

I retired as a Police Chief in 2003 from an injury from a car accident at work. I went back to college at 50 yrs old and graduated as a grandma with my BA in Criminal Justice and Sociology.

I then worked a program with grant funding supervising children visiting estranged parents. Some came from prison over to see the kids, some Mom's never took home their baby because she and baby had drugs in the systems.

One man was a level 4 sex offender and we had to have 2 security guards and two case workers for the 5 kids to see Dad. He came from 2 states away. The kids were in protective situation where Dad could not know where they were. BUT the kids wanted to see Dad.......

THe program ran out of funding....now with the PI license and training I am available to be referred by attorneys to supervise visits or monitor exchanges. I am licensed to carry....

But, The PI work is interesting. From Geneology assist, to reports of down right fraud, even Fire scenes and transporting Tractor trailer drivers for BAC/Drug test if they are in accidents. Even if they are not suspected by police, their insurance carrier require the testing.

I have been none stop. I am on Social Security disability under the Ticket to Work program. I know that it can be feast or famine in this industry. But so far my talent has me on some of the most sensitive cases.

I do not do people injured and going for a cup of coffee and playing with kids in the yard. These are very complex issues.
I started in the NE part of the state today and by 10:30 am was on my way to the South East to cover a need.

WHen I get home I need to upload files, finish time sheet, complete a new file folder and any pictures of the sites have to be uploaded.
I am exhausted I left at 5 am. and home at 8pm. 250 miles....Tomorrow all over again at 8 am I will be at another site for an attorney..

Maybe I can create an Excel and get the 14 yr old to fill it in,
I would like to get a quicken. All this is going to be new to figure out. I still work part time, maybe once a month I get a call for a field investigation for an adjuster company. I wish that had kept me busy. I made over $300 today alone....with mileage.

I hope it last, I hope my body last. Had I been able. I should have been able to stay SE and not drive home and go back in the AM.

Thanks really for all the advice, this is not a situation I want to manage, but need the work.
Di

 

[wdwfan16]

Congrats on the new job.

When you itemize, your accountancy cost are deductible. Start today with a notebook and write down your milage, any job related costs, gas, etc. in your notebook. Maybe if you set it up by job instead of by day that would help you to remember. When you have some cash flow, contact an accountant. Show them what you are doing and ask your questions then. You will be amazed at what can be written off or depreciated when you are your own boss.

She can deduct mileage OR actual expenses (gas, depretiation, car repairs, oil changes and the like) but not both. For most mileage is the way to go.

She also needs to be careful if the vehicle is not just for work. She has to only take the costs actually associated with the job. If she did a car repair today it would be almost 100% non-deductible.

ETA: Not only write in a notebook but also keep all receipts. If you have a toll, record it and get a receipt (EZPass is great for this).


"I made over $300 today alone....with mileage."

This tell me that you cannot deduct anything. You can only deduct the difference between the government allowance and what you got, if you go less. The mileage reimbursement from your company is to cover your car costs.

 

[bjscheel]

At work I keep the books in a spreadsheet, and also at home for DH's business. This is DH's first year of self-employment, so I had our refunds applied to next year. I know at least first quarter is taken care of then. In June I will recalculate and see where we are at and figure out quarterly estimates. (I do taxes at work- I will just create a dummy tax return with this year's approximate income but you could print out a 1040 and rough one in too.) Chapter 2 of Pub. 505 also has a worksheet.
http://www.irs.gov/pub/irs-pdf/p505.pdf

Anyway, in the spreadsheet, I have one sheet for Receipts. Another sheet is for expenses. First column date, second column check number, third column who it was paid to, fourth is the amount, and fifth is the category. At tax time, sort the spreadsheet by the fifth column, category, and just total each category.

If you aren't sure about figuring it out on your own, I definitely agree with the PP who said to contact an accountant once you have some cash coming in and can kind of project what a year's worth would be. They can figure out how much you need to be paying in. Your SE tax will be 15.3% of your net income plus your regular income tax. Knowing what to expect and having enough paid in (or close to it) will be worth the fee.

 

[disneymarie]

I am getting .30 cents reimbursement for mileage. Keeping the receipts. I read the rate for IRS is .39 cents? I usually have one job a day. But on Tuesday I started up north and ended up pulled for another rush job.

I have a journal and am stapling the recipts to the page, enter the date, time, and mileage. Expenses too.
I even put the lunch stop on there too. Ten hours is a long day.

I found an Excel expense sheet that looks like it will work. Maybe when I have a few checks I can buy the software and it will upload to turbotax.

Today I had a first pay, for the one day on March 6, no taxes out at all. Going to take 20% out for the savings account. What was to be a very part time job, I have been putting in 10 hr days and almost 200 miles!!!
This is the third day this week. Another one on Saturday, 4 hrs and Monday for 4 hrs.

NOW they do not pay the first hour of driving. If it takes an hour to get there I only start clock on at that time. I did get an extra $2 an hour to offset that a bit.....
I am compensated for every picture, cell phone call, tolls, once a month for the entire month.
I made over $600 dollars for 3 days, not counting the 600 miles, pictures, and cell phone use.
That is what I made in a month 3 years ago working with a grant program.
But I am beat, I hurt, exhausted.....with dh out of work I have to do what I can. He is doing the mileage, hours and receipt part, not excel part.

By next week, I could end up with only the 4 hrs though....
next month, nothing at all.....that is the way it goes.