"SHOW ME THE MONEY" VIEWS on HOW to make MONEY GR

[Tyrone Bigguns]

I'm a 1099 worker... it takes someone thats ..... not lazy... to really make it work.

True.

And, hiring a good accountant.

[Tyrone Bigguns]

meals (i had at the minimum 3 business lunches a week...eating with coworkers..of course we were talking biz),

partial, this is an example of what I'm talking about. THIS IS NOT LEGAL. Those that have gone before you have f'ed it up for all of us. This type of meal has been specifically exempted by the IRS because it has been abused so much.

mileage (notebook), car (leasing..deduct it)...bought a car (interest..depreciation)

Here's another example... You can do either, but not both. It should be common sense that you can't both depreciate your auto PLUS claim mileage, but people don't think. You have choice, you can depreciate and take actual expenses, or you can take the mileage deduction, but you CANNOT do both.

I deleted the other stuff but it doesn't mean that I agree with it, I just didn't want to refute everything.

It is more than likely that Tyrone just googled some website and copied the content.

whatever you do, don't listen to what others are doing. It isn't worth it. You need a QUALIFIED tax professional if you do this, not some idiot with a copy of turbo tax.

Find one instance where i hinted/suggested this was what i was doing currently.

Lunches: I have no idea what is legal..now or back then, but i trust my accountant who I hired to advise me..not you. Since, it was in the late 90s..i'm inclined to believe it was legal. And, if it wasn't...great for me. So, piss off.

But, more importantly..that wasn't a narrative to be followed. I was giving some things i did and some things to consider. I certainly didn't lease a car and buy a car.

[Tyrone Bigguns]

meals (i had at the minimum 3 business lunches a week...eating with coworkers..of course we were talking biz),

partial, this is an example of what I'm talking about. THIS IS NOT LEGAL. Those that have gone before you have f'ed it up for all of us. This type of meal has been specifically exempted by the IRS because it has been abused so much.

mileage (notebook), car (leasing..deduct it)...bought a car (interest..depreciation)

Here's another example... You can do either, but not both. It should be common sense that you can't both depreciate your auto PLUS claim mileage, but people don't think. You have choice, you can depreciate and take actual expenses, or you can take the mileage deduction, but you CANNOT do both.

I deleted the other stuff but it doesn't mean that I agree with it, I just didn't want to refute everything.

It is more than likely that Tyrone just googled some website and copied the content.

whatever you do, don't listen to what others are doing. It isn't worth it. You need a QUALIFIED tax professional if you do this, not some idiot with a copy of turbo tax.

Partial;
Retail is right. Deductions for meals, entertainment etc. have changed a lot in recent years and are not even close to what the uninformed think they are. Even when you travel, there are limits on what you can do with meal expenses.

Home office? - Not that easy to deduct any more. It must be used exclusively and regularly for business operations. If the area has a dual use, both business and personal, it is not deductible. What you get to deduct, generally a percentage of expenses, taxes etc. based on square footage of the office area to the overall square footage of the home is very small. I know many independent contractors (1099ers) who gave up their home office deductions because they either no longer qualified because of the dual use aspect, or the deduction was so small as to not be worth it. Home office expenses have been an IRS target for audits.

Mileage expenses? - Be prepared to document at the time of travel your odometer reading at the start and the end of the trip and the business purpose of the trip. A contemporaneous record is essential.

If you are considering this, go to the IRS website and get some of their Publications on business expenses, home office expenses, etc. They are not that difficult to read and understand. Unlike the IRS tax forms and instructions, their Publications are usually short and to the point, with lots of examples. You need to have an understanding of it even if you use a tax professional.

I highly recommend using a person who does taxes full time, not just one of the seasonal temps that so many "tax services" use. You may only need them once a year, but it is better to develop a relationship with someone who will understand your business operation.

I'm sure they have...as "in the past" referred to the late 90s.

Meals: I don't know what is current.

Office: Sounds about the same. For me, it was a way to furnish a second bedroom. And, i had the exact measurement of the room and wrote off that percent on my total payments. Made it an office: desk, computer, lamp, small stereo, futon. Now, was it only used as such? Legit question.

Mileage: Same. I had a notebook. This was pretty common. More importantly, for me, I also had a 2nd job..so i had to keep track of mileage from 1 to the other...and i seem to recall that i had to subtract that..as it couldn't be deducted.

Tax: Couldn't agree more. And, i would say that within that profession there is a wide spectrum. I found one that was highly aggressive.

[Tyrone Bigguns]

I'm not looking to cheat the IRS or see the big benefits. That's why I asked, as it seemed pretty similiar to regular employment when all was said and done. Since I'm in a big apartment and only have a bedroom, I can't deduct it.


The point is if I can get him to go up in income, it will be a pretty good opportunity. It's going to be for one legit company, and in all likelyhood, the 1099 payment would only be for the first few months while everything gets set up. I'd be employee two. The guy running things has run successful businesses in the past, though, so I trust that we'd at the very least have jobs for 6 months.

Unless there is a lot more cash, the job isn't at all appealing since you don't really have any protection if you get laid off, etc. However, like I said, if I can 40-45 dollars an hour, thats 80-90k. That's about 20 thousand more than I could see any w-2 job matching, and even with health insurance and the extra 7.5 % in taxes, it is like a nice chunk of money more, which will go a long way towards establishing a nest egg.

There is another issue that comes up, and that is whether the job even meets the definition for an independent contractor. There is a list of something like 11 criteria that must be met. The biggest and simplest one that many 1099ers don't meet is independent control over their work time (when they work) and projects (what they work on that day). Companies used to hire rafts of people as independent contractors, but specified their work schedules, told them where to work, what to work on, etc. just like with an employee. The IRS considers many of those to be employees, even if they are paid on 1099s.

Again, you can get the definition from the IRS website, and decide if the job will really meet the definition or not.

This is not an issue that he should worry about. We all know the reality of the situation.

[Tyrone Bigguns]

He shot down my updated figures. Probably not going to go that route as it doesn't seem to be financially beneficial.

If you dont' have anything else..then take it.

But, you shouldn't have any loyalty. You are a 1099.

And, you should be looking for perm...and if done right..you keep the old position as free lance.

[Patler]

There is another issue that comes up, and that is whether the job even meets the definition for an independent contractor. There is a list of something like 11 criteria that must be met. The biggest and simplest one that many 1099ers don't meet is independent control over their work time (when they work) and projects (what they work on that day). Companies used to hire rafts of people as independent contractors, but specified their work schedules, told them where to work, what to work on, etc. just like with an employee. The IRS considers many of those to be employees, even if they are paid on 1099s.

Again, you can get the definition from the IRS website, and decide if the job will really meet the definition or not.

This is not an issue that he should worry about. We all know the reality of the situation.

Of course it is something he should be concerned with, and understand. Anyone who sets themselves up in a nontraditional employer/employee situation should know what it is that they are doing.

[Tyrone Bigguns]

There is another issue that comes up, and that is whether the job even meets the definition for an independent contractor. There is a list of something like 11 criteria that must be met. The biggest and simplest one that many 1099ers don't meet is independent control over their work time (when they work) and projects (what they work on that day). Companies used to hire rafts of people as independent contractors, but specified their work schedules, told them where to work, what to work on, etc. just like with an employee. The IRS considers many of those to be employees, even if they are paid on 1099s.

Again, you can get the definition from the IRS website, and decide if the job will really meet the definition or not.

This is not an issue that he should worry about. We all know the reality of the situation.

Of course it is something he should be concerned with, and understand. Anyone who sets themselves up in a nontraditional employer/employee situation should know what it is that they are doing.

I don't care who you are, where you work, etc...1099 employees are never treated as independent contractors.

The rules of 1099 are no different than regular employee...keep your head down and your mouth shut.

[retailguy]

I don't care who you are, where you work, etc...1099 employees are never treated as independent contractors.

The rules of 1099 are no different than regular employee...keep your head down and your mouth shut.

This should prove beyond a shadow of a doubt that you have no clue about what you're talking about.

[Tyrone Bigguns]

I don't care who you are, where you work, etc...1099 employees are never treated as independent contractors.

The rules of 1099 are no different than regular employee...keep your head down and your mouth shut.

This should prove beyond a shadow of a doubt that you have no clue about what you're talking about.

Really?

I have been a 1099, regular employee, contractor and consultant. You are the one that hasnt' been in the IT field working like i did..and as partial wishes.

Any 1099/contracted employee that thinks they are going to determine their hours is a 1099/contractor employee soon to be let go...or not rehired for another contract. And, that is the bottom line....getting to stay on or being rehired.

The whole point of companies using 1099/contracted employes is the ability to let them go at any point in time..with no repercussions. As a contracted employee your primary job is to REMAIN EMPLOYED. You do so by: doing good work, doing whatever they ask, working whatever amount of hours are needed to get the work done, keeping your mouth shut, etc....THAT IS WHAT THEY ARE PAYING YOU FOR!

The more to you post, the dumber you look.

[Patler]

I don't care who you are, where you work, etc...1099 employees are never treated as independent contractors.

The rules of 1099 are no different than regular employee...keep your head down and your mouth shut.

This should prove beyond a shadow of a doubt that you have no clue about what you're talking about.

Really?

I have been a 1099, regular employee, contractor and consultant. You are the one that hasnt' been in the IT field working like i did..and as partial wishes.

Any 1099/contracted employee that thinks they are going to determine their hours is a 1099/contractor employee soon to be let go...or not rehired for another contract. And, that is the bottom line....getting to stay on or being rehired.

The whole point of companies using 1099/contracted employes is the ability to let them go at any point in time..with no repercussions. As a contracted employee your primary job is to REMAIN EMPLOYED. You do so by: doing good work, doing whatever they ask, working whatever amount of hours are needed to get the work done, keeping your mouth shut, etc....THAT IS WHAT THEY ARE PAYING YOU FOR!

The more to you post, the dumber you look.

Ty, let it go. Your advice or commentary is way of base in this string. Maybe that's what happened to you, but it is not the norm of a 1099 worker, nor should it be, especially under today's rules.

[Tyrone Bigguns]

I don't care who you are, where you work, etc...1099 employees are never treated as independent contractors.

The rules of 1099 are no different than regular employee...keep your head down and your mouth shut.

This should prove beyond a shadow of a doubt that you have no clue about what you're talking about.

Really?

I have been a 1099, regular employee, contractor and consultant. You are the one that hasnt' been in the IT field working like i did..and as partial wishes.

Any 1099/contracted employee that thinks they are going to determine their hours is a 1099/contractor employee soon to be let go...or not rehired for another contract. And, that is the bottom line....getting to stay on or being rehired.

The whole point of companies using 1099/contracted employes is the ability to let them go at any point in time..with no repercussions. As a contracted employee your primary job is to REMAIN EMPLOYED. You do so by: doing good work, doing whatever they ask, working whatever amount of hours are needed to get the work done, keeping your mouth shut, etc....THAT IS WHAT THEY ARE PAYING YOU FOR!

The more to you post, the dumber you look.

Ty, let it go. Your advice or commentary is way of base in this string. Maybe that's what happened to you, but it is not the norm of a 1099 worker, nor should it be, especially under today's rules.

Who was holding on? I certainly didn't criticize anyone's view...nor did i talk about something i know little of.

My commentary is closer to reality than anyone else's. I have been a 1099 working in IT. Retail hasn't. Partial hasn't. Perhaps you have. My experience includes work at Siemens, Disney, Harcourt, etc.

And, your comment about corps requiring 1099s/contractors to work as reg employees..and then got in trouble...nothing changed. The only signficant change was that after X amount of time you were let go..only to be rehired after X amount of time.

What is without dispute is that any employee's purpose is to remain employed. And, "enforcing" your 1099/independent status by not being available for meetings, asking for meetings to accomodate your sked, etc...is asking to be let go. Or for them to start looking around for a more compliant contractor.

That is one of the reasons contractors get paid..and often paid more than reg employees...so that they can be treated like dirt. You can't do that with reg employees..HR, etc. And, as opposed to a problematic employee...contractors are just let go...not assigned to another group, who then have to discover their new member is worthless.

If a PM told me to photocopy for 8 hours a day for 8 weeks...then, that is what i did. They met my bill rate....i do what i'm told.

[Partial]

Alright Gents, I have some questions on how a 23 year old (24 in August) should handle their money.

I've got an income of 57k before taxes as a W-2 employee.

I have 14k in debt. I have 2.5k in the bank.

My living situation is free of charge.

I will have about 500 a month in fixed expenses every month. This includes food, health insurance, living situation (I'm squatting free of charge), gas, etc.

My parents want me to get outta debt asap so they're covering my cell phone and car insurance.

With that said, how would you guys go about attacking this to maximize the earnings?

RG, Bretsky, Freakout, etc, any thoughts?

[Partial]

Nothing? When I actually need some financial planning none of the money gurus are around?

[retailguy]

My parents want me to get outta debt asap so they're covering my cell phone and car insurance.

Partial, I saw this yesterday and was going to respond, but I've been swamped lately....

The sentence that I quoted really answers all of your questions.

If you agree to take this money from your folks, you owe it to them to get your bills paid off. If you don't want to do that, then don't take their money.

Assuming that you approach eliminating the debt, you can get out fast with your income, and limited living expenses. You should be debt free in less than a year.

Dave Ramsey would recommend that you do the following: 1 - establish a $1k emergency fund. 2 - organize your debt from largest debt to the smallest debt, 3 - make minimum payments on all bills, except the smallest and pay every dime of the monies against that debt. When you pay it off, you attack the next one. In your case, Dave would advocate that you take that extra $1500 out of savings and use it to pay down debt.

Dave advocates that you stop all unnecessary spending. You stop 401K contributions, even if there is a match, you stop eating out, and keep a very small, but reasonable spending money budget. That is the ONLY way it makes sense to stop your 401k contributions.

For your situation, I think this is a great plan. You have a lot of debt for a 23 year old (I assume a good chunk of this is student loan debt), but your folks are right. If you get debt free now, you will change your life. Hope you do this and start tomorrow.

[Partial]

Would you recommend given that this is supposedly a "once in a lifetime" opportunity for investing? At the very least should I do the roth?

It's all student loans, so I'm considering consolidating. That's what my parents recommend. What do you think?

State tax: 6.25% + 1042 =3855
Federal tax: 11250
Fica: 3465
total taxes: 18570

After taxes should have about 35k left over. Absolutely no reason that I can't pay off debt and save 8-10k easily this year I would think.