Question

Question about working for a small company using a 1099 for taxes - so I just got hired for a small organization and was told I needed to keep track of my taxes, which I’d owe back each year (because they aren’t coming out of each paycheck). So my mom told me to get a credit card just for business expenses so it’s easier to track. So like for gas mileage, business materials, etc. that way all the statements are just for this job and I don’t mix them up with my personal accounts/spending. Any other tips for working in this type of environment? I’m totally new to this! Ex: what can I charge as a business expense? Etc. thanks!  

Answer 1

Anything business related, lunches, gas to and from related things, clothes for work, anything you buy that you use for your work can be written off

Comments

Not necessarily, we had a business and could right off clothes for work without it being branded.  

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@lidalidah owning your own business is not the same as a 1099 employee.  

Answer 2

What you can charge will depend on what kind of job you have. If you can, I’d talk to a tax advisor to get a getter idea.  

Answer 3

In addition to above- uniforms/clothing , anything computer related you use for job if applicable, meals, every single thing that makes sense for the type of job It is.  

Answer 4

I would find a tax adviser right away and ask them all of these questions! What can and can't be deducted is always changing, some things have maximum deductions, and sometimes individual deductions don't apply if it's less than the standard deduction. Your best bet is to talk with someone before making any decisions!  

Answer 5

Maybe instead of getting a credit card, just open another checking account that you'd only use for the business.  

Answer 6

Also, I get 1099s and I put 33% aside from every payment.  

Answer 7

We use a separate checking that is easily transferred to/from our personal account. We use all business expenses through that account even if we use personal funds to do so. We also have a savings linked to that account that we are trying to save 1/3 of every business income to cover our tax burden next year. You can make quarterly payments to the irs as well. We have never done that because I don’t want to overpay.  

Answer 8

Make sure you track miles from home to work and back