How much more difficult does a W-9 make my yearly taxes?
I am thinking of working for a business where I am essentially an independent contractor and therefore will need to fill out a W-9 form. My question is what kind of additional work will this add to my taxes in the spring? Will I need to file with a certain department or fill out a tax form other than a 1040/1040EZ?
- Anonymous1 decade agoFavorite Answer
1040, schedule C (or C-ez), schedule SE.
1040 ES so you can send in your quarterly estimated payments.
- chatsplasLv 71 decade ago
The W-9 information is used to prepare your 1099. The W-9 isn't a problem.
You will be treated--rightly or wrongly--as an independent contractor. If you're an independent contractor, then you're self-employed and don't work exclusively for one company. You have to file your own taxes, there is no withholding. Figure about 15% for SS and Medicare and minimum 10% or FIT. Illinois is flat 3% SIT, but don't know where you are. Of course you should do quarterly filings of estimated taxes. Also need to keep good records of expenses and mileage to offset the income, thus reducing taxable income, thus reducing tax paid.
Good to prepare in advance for transition and to keep detailed records of expenditures, mileage, etc.Source(s): File 1040 also schedule C www.irs.gov self employment