Independent Contractor status, 1099's

[powerage]

This is why I'm here. I have a pretty good understanding of the tax code, but because it is so complicated, I get confused sometimes. And yes I hate IC status, but I tell the taxpayer themselves to take it up with the IRS.

From the interview, the client has to travel to his place of work, even on his day off. He told me he works 6 days a week, and he goes to the same site 365 days a year, and he has to keep deposits in his home until he can get to the bank. He was not expecting to be a 1099-MISC. Work deposits you carry home means that a person should use a spare room just for this business. You go to your home office in the morning, work for a bit, and then go to the next job later, and reverse the process in the afternoon. Under the IRC, this is a legal deduction,as long as everything is properly documented. I went through this 3 years ago, my tax job was W-2 and my second job was IC, and I went from 1 job to the other without stopping at home.

[David1980]

If he had a W-2 instead of a 1099-MISC, how would that change the mileage situation?

Seems like commuting miles either way.

[taxea]

If he is an employee why isn't he getting a W-2? If he is not an employee then the person that sent the 1099 needs to issue one without employee written all over it. taxea

[ChEAr$]

puzzled

I'll go on record and say I really hate this. IMHO, most IC's I run across should be classified as employees. I've been classified like this also with 2 previous jobs. One was iffy, and the other was really beneficial, because I was in construction and did a lot of driving and bought my own supplies.

I had one today, 1099-MISC, Box 7. This job has employee written all over it, and his girlfriend is unhappy about it also, seeing how they will be getting married later this year. It is 70 miles round trip, and he cannot deduct mileage because it is considered a commute. I'm going to call him tomorrow and have him establish a legit home office, just so he can deduct these miles, in case his boss does not change the status.

(snipped....

Just why would he need a "home office"? What activities would he transact there?
You're advocating calling some of the premises an "office" just to justify deducting
mileage? I don't think that will fly.

If indeed he IS an employee, treat him so, use that new form for reporting his share of
the FICA, fill out an SS8 form and that saves him money.

[powerage]

I'll go on record and say I really hate this. IMHO, most IC's I run across should be classified as employees. I've been classified like this also with 2 previous jobs. One was iffy, and the other was really beneficial, because I was in construction and did a lot of driving and bought my own supplies.

I had one today, 1099-MISC, Box 7. This job has employee written all over it, and his girlfriend is unhappy about it also, seeing how they will be getting married later this year. It is 70 miles round trip, and he cannot deduct mileage because it is considered a commute. I'm going to call him tomorrow and have him establish a legit home office, just so he can deduct these miles, in case his boss does not change the status.

As a tax pro, I disagree with this part of the IRC. If you are labeled as an IC, you should be able to deduct mileage, period. You are paying even more in taxes, just because of the taxes on gas. Provided you have ample proof of your mileage or expenses, of course. Trust me, I practice DD. I have to around here.

And something that happened last year. Taxpayer was a W-2 employee, but yet was paid on a 1099-MISC, Box 7, for a good size bonus from same employer. Sorry dude, but you gotta pay tax on it. He wasn't happy.

1099-MISC reminds me of MFS. Only beneficial if you know the tax code.