Asking for advice from 1099 contractors

[riverdale]

I might have a chance at a contract job in the computer programming field which will pay me as a 1099 employee rather than W2.
I looked up some information on the differences, and understand that as a 1099 employee, nothing is withheld. So that would make me responsible for all taxes, including the employer's side of Social Security. I tried to factor this into my hourly rate.
Also, this work would be in another state, and the pay is an all inclusive rate. Here is where I could use some advice - wouldn't you be able to deduct all travel expenses and meals as business expenses on your taxes? I'll have to get some advice from an accountant - the taxes situation is sure to be a mess. I read that as a 1099 you have to pay estimated tax quarterly, but currently have no idea how that works.
If anyone out there has experience with this type of work, and would like to share some experiences or advice, I would really appreciate it.
Thank you

[Cynical Guy]

1. Definitely make friends with an accountant or two.

One in each location, the home and away, if you will.

And keep unbelievably good records.

[PBS Poll-435]

2. PM me with the state you live, the state you will do the work

and how much you will be paid in Box 7 "non-employment compensation."

[Holly_Hobby]

3. Talk to an accountant

I'm a 1099 contractor, lots of things are deductible, especially if you work from home like me. The paperwork is a nightmare, you need guidance from an accountant at first. I now do my own taxes.

[A HERETIC I AM]

4. Look at IRS Publication 463

http://www.irs.gov/pub/irs-pdf/p463.pdf

Talks about travel expenses and what you can deduct.

[Blue_In_AK]

5. I'm a 1099er, too.

You can deduct all kinds of things - you just need to keep good records. And, yes, you're supposed to pay quarterlies, but I never do because I really don't make all that much. I usually get penalized about a hundred bucks, but I'd rather use my money throughout the year than send it to the IRS and get a refund later. That's just me.

[ProgrezivIndie]

6. getting an accountants advice is an excellent idea!

yes, you'll have to set aside and pay quarterly estimated taxes federal & state (if applicable in your locale)

IRS 1040-ES can be obtained online:
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=estimated+quarterly+tax&search.x=0&search.y=0

your State should have similar stuff online (or at your city/county commissioner of the revenue office)


keep your records in order! some things to keep in mind when figuring your hourly rate... don't just figure what you typically would earn per hour, and just go with that. here's an example list of things to consider adding-in:

* business license expenses -- if applicable, many states allow a simple DBA (doing business as)... others require a company name+license

* mileage on your vehicle, and per diem (lodging, meals, tolls, etc.)

* equipment used to conduct (office space, supplies, test equipment, troubleshooting software, etc.)

* don't forget to add-in/pro-rate INSURANCE (liability, health, etc.)

...your accountant consultant should have a whole list of things for you to do/get/keep

[ThoughtCriminal]

7. Also, if you are paying for our own health insurance

Keep track of that too.

[notadmblnd]

8. time to start saving reciepts

maybe legally go into business? Not only can you deduct expenses for travel, you will be able to take a deduction for office space, vehicles, computers etc,. Almost anything that your business can use you will be able to deduct.