What's a 1099 tax form for?

I'm not sure either what she is referring to. She may be referring to giving a Form 1099-MISC for your tax return next year instead of a Form W-2. If you get a W-2, your half of social security and medicare taxes will be taken out of your paycheck each time. Your employer pays the other half. And you'll have withholding for your taxes.

If you get a 1099-R, you will not have anything taken out of your paychecks. At tax return time, you will have to pay both halves of your social security and medicare taxes plus you won't have any withholding and could owe a lot. Those who get 1099-MISC learn that they have to make quarterly estimated payments to the IRS to cover their taxes for that year.

Only those you are "independent contractors" should receive 1099-Misc. I think that as a personal assistant, you are an employee and should receive a W-2.

Check out the IRS article on who is an employee or whois an independent contractor.

http://www.irs.gov/businesses/small/article/0,,id=...

Hope I'm on the right path with your question.

A 1099 is a form given to an independent contractor. It means she won't take out taxes, so you'll have to pay them yourself, and will pay around 14% for social security and medicare instead of the 7.65% that employees pay.

She would give you a 1099-Misc at the end of the year based on the income you received. You would then fill out a Schedule C at the end of the year and pay taxes on the earning (minus deductions) and Self Employment Tax (Social Security). Depending on the amount, it can help you (Earned Income Credit) or hurt you if you do not withhold enough money to pay the taxes due. Be cautious and calculate how much the income might effect you.

Hope that helps!!

Well it seems that she doesn't want to pay her share of payroll taxes. If you receive a 1099 then you are considered self employed and you have to pay the full 15.3% social security and medicare. When you work for someone you pay 7.65% and they have to match it. Being her asst. makes you an employee not a contractor and she needs to pay her fair share of the payroll taxes. If she refuses and you still want to take the job you will have to file a form with the IRS and let them determine your employment status and bill her for her half of the taxes and you will pay your 7.65% at that time. This typically doesn't make people like her very happy.

Hello soleil_fairy I've read about that, Try the link below http://tax-faq.net/?k=20080325173830AAXsuIM it explains a lot Best regards and good luck Carlton

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