1099

[Susan Kline]

At 12:16 AM 02/15/2000 -0800, you wrote:
>I have a question for other floor tuners out there, (In California) like 
>me who have not yet started their own business. Even though we work for a 
>piano store, we are (at least in my case) considered  "independant 
>contactors", and we get a  "1099" form at the end of the year. Do we have 
>to make quarterly statements, or just pay our taxes at the end of the 
>year? I appreciate any help in this area, until I can meet with an 
>accountant, which may not be for a while.
>
>Best wishes,
>
>Terry Peterson

It's been awhile since I was a floor tuner, but I have been there.

First, I agree with Gina: find a good, not expensive, accountant, as much 
for the peace of mind as anything else. You can keep the cost to a minimum 
if you keep close track of all your expenses, and present him with the 
figures and receipts already organized. Here, I have to confess I do my own 
taxes .... however, I had a good (and incredibly inexpensive) accountant, 
till he retired, and after he stopped working I followed his model pretty 
well, while reading up on new things at the IRS website, which I recommend. 
You can read any publication, and download and print any form. No more last 
minute dashes to the library ...
http://www.irs.gov

Second, you don't so much make quarterly statements, as quarterly payments. 
While the IRS provides a supposedly helpful worksheet for you to worry out 
how much to pay, I usually just look at my gross receipts, guess whether 
they are more or less (and how much more or less) than they were last year, 
and project what I'm likely to owe. Then I divide it in quarters to get the 
payments. If you are less than 10% short of what you actually owed the year 
before, and you get the payments in on time, you shouldn't have a problem. 
Of course, the first year will be different. Just pay what you think you'll 
owe, on time. If it's too much, you can apply the excess to the following 
year's tax, and lower your first payment.

As to your problem with being an independent contractor, why not get some 
private clients? Then you'll qualify. Besides, it's fun.

Susan