Freelancing tax question

Last year I started freelancing to supplement my income, and I’m not sure whether I need to receive any kind of tax materials (W-4 or the like) from the company I’m freelancing for. I’m assuming I don’t, because they don’t take taxes out my payments. Am I in the right ballpark?

If they are taking taxes, they owe you a W-2 form.

If they don’t take taxes, they should send you a 1099. There is a threshold amount they have to pay you, though – if you made less, they aren’t obligated to send you one. However, you can still do your taxes without the 1099 – just report the income. The IRS is always happy when people report income that wasn’t reported to them otherwise. (OTOH, there’s no better way to piss them off than to NOT report income and have them discover it.)

Okay- these people aren’t the greatest in getting back to me, so just so I understand: as long as I turn my check stubs into the guy doing my taxes and report the income, it isn’t *imperative * that I get a 1099 from them?

The threshold is $600. If a company pays you that much in a calendar year, they’re required to report it and send you a 1099. (If they deduct taxes or SS then they’d send you a W-2). They are due by January 31st.

As a full time free-lancer, I can attest to the fact that some folks (especially sole proprietorships) don’t always comply. In that case, you can report the other income on a schedule E (or schedule C, depending on your circumstance). A good tax preparer will know all about this.

Personally, I’d reccomend writing to them to request a 1099, explaining that since you made X amount of dollars they owe you one. That way if you get audited, you can demonstrate that you made an effort.

Just following up on my own post for clarification. When a company sends you a 1099, they also send a copy to the IRS (just as with an employer and a W-2). The concern for you is making sure that if you don’t get a 1099, the IRS doesn’t either.

I see. Okay, thanks very much, guys. I’ll have to keep pestering them.