Friday, January 21, 2011

Work Camping Forms: 1099 or W-2 ?

Q.  I'll be work camping for the first time this season & I'm a bit confused.  Will I be receiving a 1099 or W-2 form?  BS, Montana

A.  That will depend on your contract. If you've been hired as an employee, you will receive a W-2 form. If you've been hired as an independent contractor, you'll receive a 1099 form.

Tax Tip:  Always read any employment or services type contract carefully. Most often, you will be receiving a 1099 form as many small employers don't want to pay for half of your self-employment taxes. This means, however, that you will need to pay them. Don't forget to estimate the amount of both income and self-employment taxes in order to make quarterly payments. You want to avoid penalties and interest for underpayment of taxes when filing your individual tax return.

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