I don’t know if this is the right place for this, but long story short, the small ( <5 employees) company I (25F) worked for as a W2 worker was sold to a new owner and he would like to pay us as 1099 workers with a slight pay increase ($1 more). I feel like I’m going to end up making less than I did as a W-2 worker once I pay my taxes at the end of the year, but I told myself I was willing to take the L since I hadn’t planned on staying there for much longer (<1 year) and the new owner is currently in a tough spot financially. The only problem is that I’m still in college and my mom pays for my tuition (~$1000 this current calendar year), and since she doesn’t ask me to pay rent, I let her file me as a dependent so she can get tax deductions for my education, but I’m unsure if she can still file me as a dependent and get those education tax deductions if I file as a 1099 worker.
My new boss is pretty adamant about paying me as a 1099 worker and I worry it’s gonna cost my mom and I thousands of extra dollars in taxes. I could really use some advice from people who know more about accounting and taxes than I do, as I’ve never been a 1099 worker before and I don’t entirely know what that implies and how that affects me as a whole, aside from having to pay more taxes.
Any advice would be greatly appreciated! If there is a compromise to be made between all parties I’m sure they’d be agreeable, but right now it just feels like I either save my mom money or my boss, who seems to be falling on tough times and whom I feel bad for. It makes me want to quit and withdraw from the situation, but then I’d be out of a source of income.
I don’t know if this information helps, but she filed my aunt and I as dependents & I have a brother who she filed as a dependent in the past but since he didn’t go to school last year and had a job she let him file as an independent. This year my brother is in school, taking more credits than me and is not working, so she plans to file him as a dependent.
I live in Hawaii, if that helps! Thank you!
Submitted October 15, 2022 at 04:59AM by annielikes https://ift.tt/HczkglC
