Actually, this is the best of both sm
Posted By: IC and employee too on 2008-10-27
In Reply to: I work FT and then as an IC. I do not file - SM
As an employee, my employer is paying part of my taxes, like anyone else. IC doesn't withhold. In one year's time (this last year) I forked out $15,000+ in taxes because I was an IC. I went employee in 2008 and claimed 0 dependents on my W4 to cover my hiney from this sort of thing. My tax accountant told me to work PT as an IC so that I can claim at least part of my expenses as I did before. I don't have enough deductions to claim my expenses under the Schedule A on taxes, this way I can deduct on a Schedule C as an IC in addition to my employee stuff.
This is all really working in my favor as my FT pays 8.5 plus incentives up to 0.0125 cents a line back to line one, in increments for production, but the PT pays 10 cpl. I work my minimums to keep my benefits, and produce for the bigger bucks as an IC. Right now, it looks like taxes that I have had withheld will almost cover the taxes I'll have to pay for the IC work. Because I have paid in with every paycheck for 2008, I should not have penalties as I have had every year in the past for not being able to file quarterly.
This is the best of both and I explained myself because I think you are looking to try to do the same thing. You have to move to where the money is best, but you need benefits while keeping your deductions and other tax benefits. If you are single with no life like I am, and can stand to switch between jobs, this is a perfect answer.
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