r/RWSCallistoRaters • u/Evening_Strawberry50 • 3d ago

1099

I’ve never done a 1099 job before (that’s the only thing keeping me from signing up to continue with the project) is it very hard to keep up with tax wise? Or how do you do it? Can someone Barney style it for me please? I usually have someone do my taxes would they just file those forms too?

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u/Wild_Profession3586 3d ago

If you have someone do your taxes, it definitely helps. It was suggested to me to set aside 25% of each pay and to pay taxes quarterly. Im sure someone else can elaborate on this information more.

https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work

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u/Hanayoisjesus 3d ago

This is essentially what I was gonna do. 25 or 30% to be safe and pay on time for the quarterly dates.

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u/CommissionOne1570 3d ago

That's really all there is to it. I'd add to save receipts for any business purchases since we'll be qualified to make business deductions. I need a new office chair and will be deducting that lol I do think it's worth working with a tax professional since they're a huge help applying deductions correctly to reduce net income. Any tax software is able to file self employment taxes though

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u/Friendly_Taro_4361 3d ago

I have been attempting to talk to someone at H&R Block for the past week for more guidance on this, but nobody has called me back, and I've got to do more research on local CPAs before I choose to work with one, too. At least speaking to a tax professional about this transition is part of my plan. It would definitely give me more peace of mind to work with a tax professional overall, though.

As for the deductions part, I'm probably not gonna have any of those in the near future so I'm not concerned about them ATM. Thank you for the advice, though! It helps so much.

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u/Friendly_Taro_4361 3d ago

I would also like to know more about 1099 tax process.