Submitted by BakedPastaParty t3_1004us0 in personalfinance

I am in NJ, I just secured a second remote job where I make a 'salary' but Im only contracted from Nov-May pending negotiations after that point. So I worked Nov 1- and onward, as it pertains to me reporting my taxes for year 2022 (I had two other jobs where I filled out W-2's, worked about 6 months at one, am still currently working the other since Oct). Is it likely I will OWE money? I am used to getting a refund. Ive also kept a detialed list, more detailed than any previous reporting year of all of my work-related expenses (clothing and gloves for the first job. Gas and mileage for one of my current jobs).

I know this may not be all that you could need to assess my situation fully, but essentially my overall question is should I expect to have a bill or a refund? If its the former, what kind of percentages, rates, etc. can I use to maybe see what I can expect?

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fawningandconning t1_j2fihvw wrote

That's not a salary job, if you're filling out a W-9 you're being paid gross with no taxes taken out and you're a contractor.

You should file your quarterly taxes for the current quarter (Q4)

>Ive also kept a detialed list, more detailed than any previous reporting year of all of my work-related expenses (clothing and gloves for the first job. Gas and mileage for one of my current jobs).

If those are related to W2 work none of those are deductible expenses.

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1hotjava t1_j2fiu7v wrote

You will get a 1099 for this work. You’ll owe self employment tax plus income tax. SE tax is 15.3%. Income tax is dependent on your other income and situation. Don’t forget state tax if you live in a state that has income tax.

>what kind of percentages, rates, etc. can I use to maybe see what I can expect?

None of us can say as we know nothing about your tax situation.

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BakedPastaParty OP t1_j2fiy4k wrote

I was just looking back at my records and I actually filed W-4 for the job that has work related expense stuff. I was a temp employee hired as a garbage loader. I rode on the back of the garbage truck and walked down our streets dumping all the trash cans. Im talking jackets, boots, gloves, hats, face protectors etc(I worked Sep-March) That would count right? And Im not sure if it was a W-2 or W-4 in the past, but I worked as a machine operator and all all of that kind of stuff got me a deduction(particularly winter jacket, boots, work gloves that we went thru daily). It's what encouraged me to save receipts and everything the whole year.

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fawningandconning t1_j2fj8du wrote

No, all of that if you're paid via W2 (you fill out a W4 to receive a W2) is not deductible. Your work should be reimbursing you for that, all of these work-related deductions went away with the 2019 tax law changes and the increase in the standard deduction.

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1hotjava t1_j2fj97w wrote

>Ive also kept a detialed list, more detailed than any previous reporting year of all of my work-related expenses (clothing and gloves for the first job. Gas and mileage for one of my current jobs).

None of this is deductible from your W2 income. If you have expenses related to your contract work you can deduct those from that income. Don’t claim expenses for W2 work as deductions from your 1099 work.

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BakedPastaParty OP t1_j2flj9r wrote

I said in another comment, but I might be confusing my own initial information. I was told to keep track of everything for the fact it WAS deductible. So maybe w-2 is incorrect. i think 1099 is more what Im doing. Temp employee hired hour for hour

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fawningandconning t1_j2flmo3 wrote

You got bad advice then, if you're paid via W2 (aka, you receive a paystub which shows money withheld for federal/state taxes/social security/etc.) then your employer was wrong. You being hired hour to hour has nothing to do with it, all that matters is what you filled out initially and the way in which you're paid.

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BakedPastaParty OP t1_j2flzay wrote

Alright I will need to look into this to be sure what my situation is. That notwithstanding, the contractual payment I have going on is more my concern. So far, Ive gathered I am going to have to pay an overall percentage on that income as there aren't any witholdings at all.

e: I just want to know what kind of percentages to expect/ to try and use to project what I will owe/ etc. Ive got an informative answer, but I would love as much informative input as possible.

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MarcableFluke t1_j2frux5 wrote

You will pay roughly 15% of your net earnings (income minus ordinary and necessary business expenses) towards self employment taxes.

You will be taxed federally on the net earnings as well. How much will depend on how much you make both from the contract position and other sources of income. We have a progressive tax system and all income is pooled together before a final tax liability is calculated.

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MarcableFluke t1_j2fsct8 wrote

The fact that you were "told" that it was deductible means nothing. Plenty of people have been mistaken about being able to deduct unreimbursed expenses on W-2 jobs since you used to be able to and that changed only a few years ago. Whether you are a W-2 employee or a 1099 contractor should be obvious on how you are paid: are you cut a check for the total gross amount, or do they deduct taxes from your check before giving you a net amount?

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BakedPastaParty OP t1_j2ft285 wrote

let me clarify a little "told" is more like "chick at liberty tax logged all the expenses I mentioned and got me $465 back"'

edit: made it a point to log every single applicable 'work related' expense ever since.

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