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Cassandra, Tax Preparer
Category: Tax
Satisfied Customers: 306
Experience:  8yrs experience in taxation for individuals. CTEC Registered and an Authorized E-filer with the IRS
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i did some work for a friend that manages a company, the ...

Resolved Question:

i did some work for a friend that manages a company, the company wants me to fill out a w-9. I do a lot of work for cash, is this something that will open a can of worms and lead to something bigger?
Submitted: 8 years ago.
Category: Tax
Expert:  Cassandra replied 8 years ago.
helloCustomerand welcome to just answer

Most often, Form W-9 is sent to independent contractors, consultants, and other self-employed workers. If you are being requested to fill this out, then they plan on sending you a 1099 at the beginning of next year.

A 1099 is income that you earned as a self employed individual. You will be required to pay taxes on the money that you have earned. Plus, you will have to pay employer share of medicare and Social security taxes, which is an additional 7.65%. Add that to your share of social security and medicare, and you will pay 15% plus federal and state taxes. Thier is good news, you will be able to deduct any and all expenses used in relation to your business, which will help lower your tax liablity.

The IRS will also be informed of your income on the 1099.

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