Is a 1099 trucking job really worth it? My boyfriend worked as a 1099 truck driver and his company scanned him. Trucking job offered is 1099 instead of W2. What do you think? 1099 contract jobs. Tell me everything. Is it a good idea? Bad idea? What do I need to ensure to ask during interview process and what do I need to make sure is in the contract? Truck driver knew to 1099. Where to start? Our 1099 jobs really is scam. Why should truck drivers not go for 1099 jobs? Let's find out. Paying a truck driver out on a 1099 is immoral. You are forcing someone else to pay taxes that you owe. If you're a truck driver and you don't own a truck and you're driving for some jackass, don't want to convince you what a great deal you're getting by being paid on a 1099. You're paying 7.62% of your income to pay his taxes. 7.62% of everything you make, you don't owe. No he does. Yep. And you're giving him that great Christmas gift for doing that. And oh by the way, if you lose your job at no fault of your own, you have no unemployment protection. Correct. And you probably don't have workers' confidence if you get hurt while working for that jackass. It's quick relegating yourself to being pimped because that really is all you're doing. The only person that makes out on 1099 is the person who is providing the 1099. Okay, because first of all, you have a self-worth problem if that's how you have to work. It's because you're willing to do it and they're going to allow you to do it. It is illegal technically. How many people who are on 1099 don't even follow the tax return? Correct. If they did, it wouldn't be a cottage industry on Series XM for every CPA to advertise how many years you haven't followed a tax return and how will help you do that. We interviewed a tax attorney. Got any? You do. His number one client, our former, our own robberators, who haven't followed a tax return 10, 15, 20 years. Let me tell you something. The IRS is the number one collection agency in the world. And by the way, they just hired 87,000 more agents. You really want to keep them with them? So anyway, forget the IRS. It's not the right thing to do. Listen, all of you all guys bitch about not being a fine driver and you found one and you came over. How's that work for you? If you're 1099, you're probably being misclassified. What does the IRS say? This is directly from the IRS site. This is what they say if a person has a right to control or direct the actions or services of an individual, that individual is an employee. Okay, I think that's pretty clear. You say, well, no Mark, I'm still 1099. I don't care what the IRS says. Listen, let's go through some of the questions from the IRS site and we'll determine that right here. Okay, does the company determine when or where you work? That's one of the things that the IRS likes to know. Do they determine when or where you purchase supplies or services and do they pay for those supplies or services or do you pay for them? Do you make a significant investment in the equipment and the IRS uses the word significant? Have you made a significant investment? Not you bought a wrench, you bought a truck. Hey, do you have an opportunity for loss? Can you lose money? Not just can you not make money like there's no work and you get nothing. There's no work and you lose a thousand bucks because you got a truck payment. All right. The IRS also likes to see you be able to sell your services on the open marketplace as they say, meaning can you work for someone else? You work here for a week, you work for somebody else for a week, you come back also. Are the services that you provide a key activity of the business you're providing them for? Example, I'm a plumber. I work for a plumbing company. I am an employee. Okay, but I'm a plumber and I go to an electrician shop because they're toilet is backed up. I'm an independent contractor. That is not a key service. So you're a driver, you drive a truck for a company, that's their service. You're an employee. That's what the IRS says, okay? 1099s are somewhat of a scam in my opinion. A lot of drivers are getting into these 1099s and they have no clue what a 1099 is. They don't understand how to even run a business whatsoever. And the whole purpose of a 1099 is that you are an independent contractor, being a business person. What's happening is that these carriers are pushing the tax burden off on you as the contractor. So at the end of the year, they're going to write off the dollar amount that they paid you. Okay, this is why it's so important to understand business because a lot of guys will put up videos on YouTube and will put up a stuff on Facebook, post or just blogs in general here on the internet. And they're saying, hey man, I'm making all this money, right? Okay, so you can actually calculate that you're going to make $3,000 times 52 weeks. And even if a carrier is offering you a guarantee pay or base pay, and you're a 1099, well still, at the end of the year, six figures to shovel off that amount of money to you, and you're left with no write-offs. Am I supposed to be writing off the truck note? Am I supposed to be writing off insurance? Am I supposed to be writing off iftar? Am I supposed to be writing off fuel? Yes. As a 1099 contractor, it is important that you have things at the end of the year to write off. If you don't have things at the end of the year to write off, you are going to be hurting. And a lot of individuals will get with some of these carriers, and this is not to be biased, but typically the carriers that I see that do this the most are either one of two things, that either foreigners from other countries that came over the US, and they got a DOT number, they got all that is stuff to be able to run, a truck and company. Or either two, they are just playing out right on our operators, who have a couple of trucks, and they don't want to deal with your tax burden. Because essentially if they have you down as an employee, or in your eyes you think that you're an employee, well you can't technically be a 1099 contractor. The only way you can be a 1099 contractor is that they have to state that upfront, that this is a 1099 position and you need to be a contractor. And then they force you to pretty much go out and get an EIN number, have you signed a BSOL proprietor, have you get an LLC, things of this nature, and make you feel like you're doing something, right? But if they're not allowing you to write off anything on that truck, at all, they're not taking out truck payments on your settlement, or you're not paying for fuel, and you just think, I don't got no worries, the same my truck, the same my fuel, I just get $3,000 a week, and I'm good, yeah, I'm 1099, but I'm good, technically you're not, because when it comes down to the bottom line of things, is that at the end of the year, when it's time to go see the Mr. Taxman, and you got $100,000, or $120,000, and he's gonna say, okay, so what do you have to write on? The only thing that you're gonna be able to write off is per deal, okay, which is gonna go from anywhere about $17,000 to $20,000, just depending on how long you're out on the road for. So yes, will that help out with your taxes a little bit? Sure, help out a little bit. Next thing you probably will be able to say, I got a cell phone bill, so you'll write off your cell phone bill, and it'll help out a little bit once again, you know, what, $3,000, $4,000 of a cell phone bill for the year. Still, technically, leaves you at between the $90,000,000 range, okay, and with you being in such a high tax record that way, I know I hear people say, oh, you only got to pay 15.4% tax, certain statuses, pay 15.4%. You don't technically pay 15.4% unless you are filing as an S-corp, okay, other than that, if you're like a sole proprietor and this individual says, hey, you just need to go out and get your EIN number, you could be taxed as higher as 30%. Okay, so you're the owner and you're the worker, you're gonna get taxed at a higher percentage. That's why it's so important for you to have these write-offs to help you out at the end of the year so that you're not taxed at $100,000. The biggest scam that I'm seeing right now, when it's time for tax time, and they say, okay, you made $100,000 after all write-offs. Well, we're gonna hit you with 30% tax, so how much do you owe in taxes? $30,000. Pay attention. If you're going to a carrier and they tell you to be a 1099, first thing that you should be asking is, what all can I write off?