Starting a New Gig (1099 question)

jcobear · Jun 2, 2014

Well, here I am... and I am starting with a new company. I am a very new driver - it will be a sprinter van leased at $75 weekly and they cover all insurance. They have stated about $40K a year. But I am not sure that is correct especially after reading all this in a sprinter. And I am not sure if the van is insulated or what not, so basically just a blow up bed on a floor, as of right now.

One of the things missing from this is for us new ones.... is.... do we need to do anything special with the IRS, or just wait til I get my 1099 and then pay taxes on that. Any info on this is helpful. I will put a percentage back each week for that but as a independent contractor do I need to let them know or fill out some form or just wait til the 1099 comes in January. I am also looking for info on how to set up your van with as little modifications as possible but stay comfortable in heat/cold because the van isnt mine. So am not sure of what mods I can or cant do yet, my orientation is this week. I think they said about .52 per mile. 1099 info please, or what I need to do.

Greg · Jun 2, 2014

If you are going to be an IC( Independent Contractor) , which you will be if you are going to get a 1099, you will HAVE to pay quarterly estimated taxes. If you wait until you get a 1099, you WILL pay penalties too. Don't drive for the IRS. Find an accountant that is familiar with truckers taxes.
Good luck with the new gig.

Moot · Jun 2, 2014

Here's a link that should help you understand estimated quarterly tax payments. Calculating How Much Estimated Tax to Pay

Depending on where you live, you may have to make estimated quarterly tax payments to your state.

Ragman · Jun 2, 2014

If you are not sure what forms to file at this point, I would make a bee-line to a cpa or tax accountant pronto. Kapeesh?

letsdrive · Jun 2, 2014

Roamin said:
If you are going to be an IC( Independent Contractor) , which you will be if you are going to get a 1099, you will HAVE to pay quarterly estimated taxes. If you wait until you get a 1099, you WILL pay penalties too. Don't drive for the IRS. Find an accountant that is familiar with truckers taxes.
Good luck with the new gig.

I thought the quarterly was a option so your supposed to do quartly filings oopps

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Greg · Jun 2, 2014

letsdrive said:
I thought the quarterly was a option so your supposed to do quartly filings oopps

Sent from my SPH-L520 using EO Forums mobile app

The IRS has few options that WE choose. Catch up NOW. The longer you wait, the higher the penalties.
By the way, IRS quarters are NOT calendar quarters.

Greg · Jun 2, 2014

Who? When? Where? How?

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

Moot · Jun 2, 2014

If you are new to the contractor thing, you should use the IRS worksheet to figure your estimated taxes. Come next April you will see if you need to do some tweeking to your quarterly payments. My quarterly payments are on the high side. I usually take several weeks off during the summer so I often reduce my September payment or skip it entirely. I work so I don't have a refund due. I'd rather write a check in April instead of getting a refund.

Mailer · Jun 2, 2014

There are exceptions and you may not have to file the quarterly tax. Follow Moot's link and find "1040-ES FORM", read the exceptions. Many drivers fall under this category.... me too.

Of course, it best to check with your CPA. You can also post the tax questions on the tax thread on this site, Fkatz will answer your questions. Have fun!