W-2 does not allow travel to and from work, I think. Travel during the day may be deductible, but not the round trip to the main work site. W-2 will also require the employing entity to withhold taxes.
The 1099 allows all mileage to be deducted, since you are not an employee, but a contractor. You will personally need to make quarterly deposits in your IRS tax withholding account, or risk fines. I think you'd better be sure by checking with a professional tax preparer. Yours truly, Charles H. Roberts, 4th Customer Service Manager (CSM) Riverside County Information Technology (RCIT) Office: 951-486-7780 Cell: 951-840-8699 eMail: [EMAIL PROTECTED]<mailto:[EMAIL PROTECTED]> From: Action Request System discussion list(ARSList) [mailto:[EMAIL PROTECTED] On Behalf Of Drew Shuller Sent: Monday, September 08, 2008 8:38 AM To: arslist@ARSLIST.ORG Subject: OT: W-2 vs. 1099 ** Hello ARSlisters. Sorry for the off-topic post! I have a question about bidding projects W-2 as opposed to 1099. Check to see if I'm right: With W-2, you get to have a portion of your income tax-free as a per-diem. Not so with 1099, but you can deduct your expenses from your taxes. Doesn't one of those options carry the employer's expectation of a lower rate? If I'm given the choice of W-2 or 1099 with the same rate for both, which should I choose, if significant travel is involved? Thanks in advance! Drew Tulsa, OK __Platinum Sponsor: www.rmsportal.com ARSlist: "Where the Answers Are" html___ _______________________________________________________________________________ UNSUBSCRIBE or access ARSlist Archives at www.arslist.org Platinum Sponsor: www.rmsportal.com ARSlist: "Where the Answers Are"
