Anyone receive a 1099 rather than a W2??

Discussion in 'Prop Firms' started by cubical, Apr 4, 2010.

  1. cubical

    cubical

    As a day trader, if you get a 1099 at the end of the year, do you pay social security and medicare taxes on the gains?
     
  2. nickdes

    nickdes

    When I was an independent contractor, I received 1099's and I had to pay self employment tax, I was in shock at the amount of taxes I owed.... Needless to say, I started to pay quarterly taxes after wards. 1099 's I do not like anymore. LOL
     
  3. yes you do.
     
  4. nickdes

    nickdes

    I forgot to mention that social security and the other are part of the self employment tax, I was referring too. You can, (at least I could) off set my earnings via the 1099 with my expenses..
     
  5. Surdo

    Surdo

    You sure gotta lotta expenses, or very little 1099 income!
    Set up a NOL for the rest of the expenses that did not offset the income.
    :D
     
  6. Form an LLC. Then you don't have to pay self employment tax
     
  7. cubical

    cubical

    Then wouldn't the LLC have to pay the tax? Which would be the same thing.
     
  8. You must be joking...
     
  9. Surdo

    Surdo

    I really wish people would stop posting bad tax information on this site.

    TALK TO A CPA!
     
  10. steve3001

    steve3001

    Not enough info given in the initial post to even begin to answer this question. However, if you're an "Investor" in the IRS's eyes, you account for your gains and losses on Schedule D, just like always. If you are a "Trader" then that puts you in another world as far as the IRS is concerned.
     
    #10     Apr 5, 2010