w-2 is where they take the taxes out and pay them to the gov't in your name...1099 is when you are an independent contractor and you get paid your gross pay and you are responsible for paying your own taxes. So 1099 is correct...
-----Original Message----- From: Ras Tafari [mailto:[email protected]] Sent: Thursday, December 23, 2010 10:57 To: cf-community Subject: Re: 1099 for $150?? i am a hosting company, and design company. i charge clients a rate, on my box, that i host @ a hosting company in utah. that box costs me per month, and i charge clients monthly to host, so, im not sure if i technically mark anything up, as its my box, and my hosting charges. the 150 was for design work. i paid taxes on that in 2009. he never filed crap for me, or any of the other guys who worked for him. mine just happened to be low for that year. the prior year, was significantly higher, due to a new site i built for him. i paid taxes on that too. im not sure he did the right thing there for me either, but at least im covered, as i paid my taxes on it :) and im prolly fuckin up the names of things, w-9, 1099, whatever... but the story above should explain and i think by what you've said im good, and it aint worth it for him to do a thing for "mine". which is all i care about at this point. although he's a friend, thats on him and his business. w0rd. On Thu, Dec 23, 2010 at 11:15 AM, Cameron Childress <[email protected]> wrote: > > A few things here... > > Anything that is a reimbursement is not taxable as income to you and > they should not put it on your 1099. If you are marking up hosting, > then the markup is probably taxable, but I would talk to a CPA about > that to know for sure. > > If you made the money in 2009, and you were paid the money in 2009, > then I don't think that they can legally issue you a 1099 for it for > the tax year 2010. They would have to issue an amended 2009/1096 (the > employer part of 1099s), and they would probably get a penalty for > that since they should have issued all their 2009/1096 by Jan 31 2010. > Even if they do this and issue you a 1099 for 2009, if you already > reported it you don't have to do anything else because you already > paid taxes on it. Again, I would talk to a CPA before accepting this > as fact. > > Last - which end of the equation are you on here? Issuing 1099s or > receiving them? I assumed receiving, but looking back at your > original email it could be either... > > -Cameron > > On Thu, Dec 23, 2010 at 10:36 AM, Ras Tafari <[email protected]> wrote: >> >> well the bueno part is that ive already claimed the income as it was, >> in 2009 the not-so-bueno part is that he didnt do it for more than me >> and for more money than i, and a lot of times, the work is done by, >> for lack of a better term, local crack junkies. >> >> ugh. >> >> 420 of the $570 that year was my hosting fees (which i pay tax on) >> and he doesnt 1099 for service fees like that, right? or does he? >> >> anyway, let me know, but i didnt think so. >> >> w0rd. >> >> On Wed, Dec 22, 2010 at 5:51 PM, Cameron Childress <[email protected]> wrote: >>> >>> On Wed, Dec 22, 2010 at 11:08 AM, Tony <[email protected]> wrote: >>>> hey guys and gals. >>>> >>>> does it make sense to submit a w-9 to a vendor for $150 of work in >>>> 2009? isnt there some sort of "too small" for 1099? >>> >>> 1099 is only required if you make $600 or more over the course of >>> the calendar year. If you are only getting $150 from them they do >>> not have to 1099 you, but they may elect to anyway. If you have a >>> good working relationship with them I would explain this to them. >>> My understanding is that if they report the income you will be >>> required to pay tax on it. >>> >>> You can find more here: >>> http://www.irs.gov/instructions/i1099msc/ar02.html >>> >>> -Cameron >>> >>> ... >>> >>> >> >> > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:332837 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
