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I think my boss is filing taxes wrong but I'm not totally sure. This is my first non-W2 job so I'm super confused. We get 1099-NECs at this house cleaning company I work for. There's 7 of us cleaners plus the boss who usually works alongside us. She requires us to show up at 8am Monday through Friday without exception. She gets really annoyed if anyone calls in sick or requests time off, even when asked well in advance. The company provides everything - all cleaning supplies, the work vehicles, and even pays for gas. My boss makes our daily schedule, decides which houses each person goes to, and we aren't allowed to leave until ALL the houses for that day are finished. There's never a set end time. We're paid hourly through Zelle every Thursday night. From everything I've read online about independent contractors vs employees, this seems like we should be W-2 employees, not 1099 workers? She controls when, where and how we work, provides all equipment, and we're clearly part of her regular business. But like I said, I know almost nothing about taxes so I'm really confused!
I'm trying to figure out what filing status to use for my 2023 taxes. My divorce was finalized in July 2023, so I was legally married for about half the year and single for the other half. We were separated the whole time before the divorce was official. Now I'm confused about whether I should file as Single, Married Filing Jointly, or Married Filing Separately. Which option would give me the better tax advantage? Anyone know what the IRS considers my status when the divorce happened mid-year like this?
Something nobody's mentioned yet - if you qualified as "unmarried" for tax purposes before your actual divorce, you might have been able to file as Head of Household even earlier. According to IRS rules, you're "considered unmarried" if: 1) You file a separate return 2) You paid more than half the cost of keeping up your home 3) Your spouse didn't live in your home during the last 6 months of the year 4) Your home was the main home for your child for more than half the year 5) You can claim the child as a dependent Just throwing this out there because a lot of separated-but-not-divorced people don't realize this option exists!
That's really helpful! So technically even if my divorce wasn't finalized until July, if we were living separately since 2022 and I meet those other criteria, I could potentially file as Head of Household? How would I document this if I get audited?
Yes, exactly! If you were living separately since 2022, and you meet all the other criteria I listed, you could potentially qualify as Head of Household even before the divorce was finalized. For documentation, keep records showing separate residences (lease/mortgage documents, utility bills), proof you paid more than half of household expenses (receipts, bank statements), and documentation showing your children lived with you for more than half the year (school records, medical records, childcare receipts). Also maintain any legal separation paperwork or documentation showing when your spouse moved out.
Don't forget to check if your state has different rules than federal! I got divorced mid-year in 2022 and found out my state requires you to use the same filing status for state that you use for federal, but some states let you file differently. Almost messed this up and had to redo everything.
This is a really good point. I live in Missouri and they required me to use the same filing status for state and federal after my divorce, but I have a friend in Kansas who was able to file differently. Definitely check your specific state rules.
I started delivering for Doordash a few months ago as a side gig, and I only ended up making $1718.77 total. I got a 1099-MISC form and I'm confused if I even need to file taxes for this small amount? I thought there was some minimum threshold where you don't have to pay taxes, but when I tried the questionnaire on the IRS website, it said I do need to file (though I might have answered something wrong since this is all new to me). Also, I'm looking at the 1099-MISC form and it shows $1718.77 under "state income" - what exactly does that mean? And shouldn't there be a "federal income" box somewhere too, or is that not applicable in my situation? I'm totally lost with all this tax stuff and would really appreciate any help!
Honestly the whole self-employment tax thing is a mess. I did food delivery for 3 months last year and made about $2000. The most important thing to know is you NEED to file Schedule C and Schedule SE even with that small amount. The $400 threshold is the key here. But don't panic too much about owing a ton. After mileage deductions, I barely owed anything. Just make sure you track your miles carefully for next time - use an app like Stride or MileIQ. I didn't track well last year and regretted it.
Is there anyway to estimate mileage after the fact if you didn't track it? I did some driving for Uber Eats but totally forgot to log miles.
Yes, you can estimate your mileage after the fact, but you need to be reasonable and have some basis for your estimate. If you have delivery history in your app, you can use that to reconstruct your mileage. Most delivery apps keep a record of your deliveries, so go through your history and map out the routes you took. Remember that you can count all business miles - driving to pickup locations, to customers, and returning to busy areas after deliveries. Just be careful not to include personal miles. If you're audited, the IRS will want to see some documentation, so create a log now with your best estimates and note that it's reconstructed. It's not ideal, but it's better than not claiming the deduction at all.
does anyone know if you need to keep the 1099 misc form after you file? my tax person said i do but my mom says once its filed u dont need it
I've been trading quite a bit lately and started looking into specialized tax services that focus on traders' tax situations. Found one that seems to have a good reputation from my research, though I keep seeing complaints about their pricing. They're quoting an initial fee of around $3300 for new clients, but they're calling this a "partial payment" and "minimum." What's concerning me is they can apparently bill additional hours beyond this with no clear ceiling on what the final bill might be. My trading situation is pretty straightforward, and my overall tax picture (job, real estate, marriage status) isn't particularly complex. I'm worried that without a firm cap on charges, I could end up with a much bigger bill than the $3300 "minimum" they're quoting upfront. Is this typical for trader-specialized tax services? In the past when I've worked with CPAs, they usually charged a clear flat fee, but I wasn't trading as actively then so I'm not sure if this pricing approach is standard in this niche. Any experiences with specialized trading tax services would be helpful!
Been trading full-time for 4 years now and have used both regular CPAs and trading specialists. Here's my take: If you're doing 100+ trades a year, particularly with options or futures, a trading specialist is usually worth it. Regular CPAs often mess up wash sales, don't understand the nuances of trader tax status qualification, and miss specialized deductions. That said, $3300 as a MINIMUM seems steep. I use a trading tax specialist who charges $2100 flat for my returns which include trading (500+ trades annually), rental property, and W-2 income. They only charge extra if I need specialized consultation on specific tax strategies. I'd keep shopping around. There are reputable trading tax specialists with more transparent pricing models.
Thanks for sharing your experience! Can you tell me roughly how many trades you do annually and what kinds of securities? I'm doing about 300-400 trades a year, mostly stocks and some options. Also, did your specialist help you with trader tax status qualification or are you filing as an investor?
I do about 500-600 trades annually, primarily options on indices and individual stocks, with some futures contracts mixed in. My volume increased significantly over the past two years. My specialist was crucial in helping me properly document and qualify for trader tax status. They guided me through maintaining a separate trading business entity, proper record-keeping for establishing trading as my primary business activity, and documentation of my trading hours and strategy. Without their help, I likely wouldn't have met the requirements convincingly enough for the IRS standard.
Something nobody has mentioned yet - ask if they offer an "audit defense" guarantee with their service. Many trading tax specialists who charge premium rates include this, meaning they'll represent you at no additional cost if you're audited based on returns they prepared. This can be SUPER valuable for traders since trading activity, especially if you're claiming trader tax status, can trigger more scrutiny. When I switched to a trading specialist (I pay about $2800 annually), the peace of mind from knowing they'll handle any audit issues without charging me more was worth the higher upfront cost. Just make sure to get that audit protection in writing and understand exactly what it covers!
100% this. Got audited 2 years ago specifically about my trading activity and trader tax status qualification. My specialist handled EVERYTHING with the IRS without charging a penny more. My buddy who went with a cheap general CPA ended up paying the CPA another $3k just to handle the audit communication. Audit protection is essential for active traders.
Just e-filed through TurboTax last week and I'm already anxiously checking my bank account every morning! This is my first year using direct deposit for my refund (usually got paper checks before), and I'm wondering how fast people are actually getting their money deposited this season. The IRS website says 21 days is standard, but I've heard some people get theirs way quicker? My return was pretty straightforward - just W-2 income, standard deduction, nothing complicated. Filed on February 8th and got the acceptance confirmation about 12 hours later. For those who've already received their tax refunds via direct deposit this year, how many days did it actually take from when your return was accepted? Just trying to set realistic expectations while I refresh my bank app 20 times a day lol.
Data point: Filed with TaxAct on Feb 2, accepted same day, direct deposit hit my account Feb 11. So 9 days total for me. Return was pretty simple tho - just W2, mortgage interest and property tax deduction. My sister filed Jan 29 (also direct deposit) and is STILL waiting... turns out she had education credits and earned income credit which apparently triggers more scrutiny and longer processing times.
Thanks for sharing your timeline! Was your refund status showing "approved" for a while before it hit your account, or did it change straight from "received" to "sent"?
Filed thru H&R Block on feb 12th, got accepted same day, refund directly deposited feb 22. So exactly 10 days for me. Super straightforward return though, just W2 and student loan interest deduction. One tip - if you're using the IRS2Go app to track your refund, I noticed it updated before the website did. My app showed "sent" status a full day before the website updated with the same info.
Keisha Robinson
Another thing to consider - if you're misclassified, you're probably missing out on overtime pay too! If you're working until "all houses are done" with no set end time, I bet there are weeks where you go over 40 hours without getting time-and-a-half pay. When I was misclassified at my previous job, I not only filed with the IRS, but also with the Department of Labor for unpaid overtime. Ended up getting back pay for almost a year's worth of overtime they never paid! Just something else to think about.
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Dmitry Popov
AuthorOmg you're right - we definitely go over 40 hours some weeks when there are more houses or deep cleans scheduled. I didn't even think about the overtime angle! How did you go about filing with the Department of Labor? Was it complicated?
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Keisha Robinson
Filing with the Department of Labor was surprisingly simple. I went to the DOL website and filed a wage complaint through their online system. You just need to provide details about your employer, your work hours, and how you were paid. After I submitted the complaint, a DOL investigator contacted me within a couple weeks. I shared my time records (I had kept my own log of hours worked in a notebook), and copies of payment records. They handled the entire investigation and calculated what I was owed. The whole process took about 3 months, but they recovered all my unpaid overtime plus damages.
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GalaxyGuardian
Has anyone considered that the house cleaning industry has a lot of grey areas? My mom runs a small cleaning business and she says many cleaners prefer 1099 status because they can write off mileage and other expenses. Maybe your boss thinks she's doing you a favor?
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Ava Garcia
While some workers might prefer contractor status for the deductions, that's not how tax law works. The IRS has specific criteria for worker classification regardless of what either party "prefers." If a worker meets the employee criteria (like OP clearly does), classifying them as a contractor is illegal tax evasion. Also, in this case, the workers can't even claim mileage deductions since the company provides the vehicles and pays for gas! They're getting all the downsides of contractor status (higher self-employment taxes, no benefits, no protections) with none of the advantages.
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