I will be starting a part-time job doing some accounting work and the company that is hiring me said they will be giving me a 1099 form instead of w-2. I realize I have to pay taxes on my own, but I have the following questions:
1. Do I have to pay taxes quarterly?
2. Since I don't own this business, can I still take deductions like milage?
3. I am also a part-time student trying to finish my accounting degree, since what I am studying helps me with my new job, can school expenses be deductible?
4. Are there any other deductions that I can take? ( I won't be working from home.)

AtlantaTaxExpert

1) Probably, to make sure that you have the money come time to file your tax return.

2) You DO own a business. It is accounting work done on a contract basis.

3) NO! Any education that qualifies you for a profession cannot be deducted as employee business or training expenses.

4) Mileage, tools needed for the work (like a laptop), office supplies, cell phone costs if you use the cell phone for the contract work.

Mobea

If the mileage is for driving back and forth to the office (company) you will be working for, then it is considered commuting miles, non deductible.

AtlantaTaxExpert

Sorry, Scott, but Mobea IS correct.

The initial trip from your home to the office, and the last trip from the office to home, IS commuting, whether you are being paid under a W-2 or under a Form 1099.

The IRS has made that point abundantly clear in multiple publications.

nickynak

I emailed the irs about the commuting and this is part of the overall response they gave me regarding commuting:
Form 1099 Misc with the amount of income in Box 7 and not a Form W-2.
Your questions are
regarding expenses such as mileage, clothes, and day care
expenses.***Mileage*** As for your mileage, you cannot deduct the costs of taking a
bus, trolley, subway, taxi, or driving a car between your home and your
main or regular place of work. These costs are personal commuting
expenses. You cannot deduct commuting expenses no matter how far your home
is from your regular place of work. You cannot deduct commuting
expenses even if you work during the commuting trip.***[/color][/i]

Mobea

Hey ScottGem, could you please add a different comment now? I hate seeing those little red marks on my comments list. LOL

AtlantaTaxExpert

I agree; RED is hard on the eyes! :-)