DH's new "employer" wants to hire( actually hired him a few weeks ago) him as a sole proprietorship. I have no idea what the rectification tax wise is for this tax wise.
Does that mean we can't file jointly any more?
He said he was told by the accountant he can deduct the mileage to and from work on his taxes. I can't find anything that says he can. I think the accountant is shady.
It sounds like what he is saying is that he will be paid as an independent contractor. He will receive a 1099 (NOT a W-2) tax form and will be considered self-employed by the IRS. His wages will go on a Schedule C form and he will be able to take lots of business expenses.
It doesn't in any way alter your status as MFJ (married filing jointly).
A bigger issue is whether or not your husband's job SHOULD be classified as an employee or an independent contractor. I know we discussed this recently on MM- let me see if I can find the post.
If he is commuting to the same office, every day, at set hours, I would not feel comfortable deducting those miles as you aren't supposed to deduct commuting miles. If he is out and about at various sites and jobs, always changing, that is different.
Who is "the accountant"? Someone from his job or your personal accountant?
Who is "the accountant?" Please, please, please go hire an accountant for this tax year at the very least. Do not rely on the company's accountant since you need someone independent to advise you on your best interests.
A bigger issue is whether or not your husband's job SHOULD be classified as an employee or an independent contractor. I know we discussed this recently on MM- let me see if I can find the post.
If he is commuting to the same office, every day, at set hours, I would not feel comfortable deducting those miles as you aren't supposed to deduct commuting miles. If he is out and about at various sites and jobs, always changing, that is different.
That post was me .
Based on what you all have told me and what I know from DH. It is obvious that this job is classifying him as an independent contractor for the wrong reasons.
He commutes to the same office location each day and completes the work there and then returns home. I told him it is not deductible!
Misclassifying workers is illegal and it is tax fraud.
However, I know you know this and you do not care, so let's not repeat the argument.
Uh no. I think you misunderstood me. I said that I don't have a prob with people working under the table. DH is not attempting to work under the table.
You need to hire an accountant who you can trust and stop trying to get answers from an internet message board where you're asking questions and don't have all of the information. sarajoy (especially) gives good information, but you're not in a position to try to do anything on your own when you don't have an understanding of what being an independent contractor means.
Self-employment has a LOT of ins and outs. It's not something you should attempt on your own without a basic understanding of how the paperwork all comes together.
You need to hire an accountant who you can trust and stop trying to get answers from an internet message board where you're asking questions and don't have all of the information. sarajoy (especially) gives good information, but you're not in a position to try to do anything on your own when you don't have an understanding of what being an independent contractor means.
Self-employment has a LOT of ins and outs. It's not something you should attempt on your own without a basic understanding of how the paperwork all comes together.
I think you think that I am trying to be difficult. I actually don't have any more info to give an accountant than I just posted. I can't tell an accountant any more info than I have.
I just want a link to a book, a site whatever than has more info on how he is to file his taxes, file his SS pay, applicable deductions etc.
I am not trying to find tricky deduction or evade paying anything.
You need to hire an accountant who you can trust and stop trying to get answers from an internet message board where you're asking questions and don't have all of the information. sarajoy (especially) gives good information, but you're not in a position to try to do anything on your own when you don't have an understanding of what being an independent contractor means.
Self-employment has a LOT of ins and outs. It's not something you should attempt on your own without a basic understanding of how the paperwork all comes together.
I think you think that I am trying to be difficult. I actually don't have any more info to give an accountant than I just posted. I can't tell an accountant any more info than I have.
I just want a link to a book, a site whatever than has more info on how he is to file his taxes, file his SS pay, applicable deductions etc.
I am not trying to find tricky deduction or evade paying anything.
irs.gov.
Give the accountant what information you have. They will direct you on what questions to ask and what information to get. That's their job.