[USER]

Okay yall I’ve got a tax refund question..
so each year with my w2 and 2 independents (I made 23k a year)

I usually got back almost 10k from tax refund.
I just switched jobs after 3 long years at my old one. It was a franchise.

I now work for a cleaning company that pays me through Venmo. I make 20/ hr. She said at the end of the year she will have a 1099 for me to file taxes with.

My question now is will the 1099 replace my W2 I usually file with?

Since no taxes are coming out of my paychecks (she sends me exavt 20x how many hours i worked that week) how will this affect my refund?

ALSO I am expecting a baby in December so now I will claim 3 dependents.

[Williams]

Be sure to set aside a big chunk of your money to pay taxes when you file next year. I would do like a third every month.

If you don’t, forget about a refund. There is nothing worse than a big surprise tax bill

[Rebecca]

This doesn’t sound legit to be paid as a 1099 contractor.
Even if it were, you’ll now have to pay both halves of fica plus your income taxes and definitely want to make estimated payments to avoid penalties.

It is *definitely* different than a w2. I’m an accountant.

[Anca]

When you get a 1099 it means you are an independent contractor and you are going to pay self employment tax. Did you know this when you got hired?

You’ll have carve aside about 20% of what you’re getting paid to cover that and make sure you’re not caught by surprise when you file taxes.

And to your question about how it affects your refund, it’s really to tell right now because you have a fluid situation.

You should talk to a tax preparer in December and have them to the tax planner for you to see how your refund is.

[Author]

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