what's your tc on current job? and your 1099 hourly rate for side gigs? w2 is yearly tax. how do you handle the taxes for 1099? nyc 175K base here + doing 80USD/hour 1099 i work remotely on both and got my GC
1099 is just a reporting of what you were paid to the IRS. You get to decide how to report this to the IRS by virtue of the company you set up for the 1099 payments. If the 1099 is in your name, it’s a sole proprietorship and works like a W2 with slightly higher taxes (cos of FICA). If it’s in a company name, the fax filing rules are based on the company type
I have found that the easiest solution is to withhold extra from my W2 paycheck to cover approximate tax from 1099. Note that on 1099, in addition to normal tax bracket you will also have to pay ~15.9% self employment tax which covers SS, Medicare, etc. so you will owe ~40% of your taxable 1099 income. W2 TC 135k (east coast non FANG) 1099 income: 60-80k I get paid weekly for W2, so I withhold an additional 400 fed, 100 state for taxes. If I bill within the 60-80k range I still end up getting a modest return when I file
Or… just fill out and file the 5 lines of Form 1040-ES with your payment in the last week of December (like many of us do)
No extra forms and no worry about a separate bill, plus the benefit of actually getting a return at the end of the year
Limited Partner in other businesses
google allows this? or you just keep it secret?
Google is not your mommy. The US constitution allows this. You’re free in this country. You just can’t work for someone else and get paid a salary, or compete against google. Being a limited partner is like buying stocks, except its private