r/Accounting•
ZinkOne

I Don't Know What My Employer IS Or How To Do My Taxes

Earlier this year, when I went to do my taxes, and again when I went to buy a car, I was asked who my employer is. And uh, well I wasn't sure.

I work part-time as a "contractor" for a tech company (my official title is Marketing Specialist). I receive a W2 for this job. I can only work up to 25 hours a week.

I also contract as a marketing person for a power company. I receive a 1099 for this job. I can work up to 10 hours a week for now, but that can change. (I was the Marketing Manager for this company for six years before quitting and moving to LA to be a filmmaker.)

I am a freelance filmmaker/contracted gig worker. I made about $15k in both 2021 and 2022 contracting as a production coordinator, 1st assistant director, 2nd assistant director, or production assistant. Some of the jobs are 1099. And some are W2.

So, I am not sure if I am technically self-employed or not. I can only take deductions for my tax returns on the 1099 gigs. The film industry in California considers film gig workers "employees" even though sometimes a gig is only one day. I don't get any health benefits, I don't get unemployment, and I can't deduct things like software I use for these gigs that I pay for myself. This is KILLING my taxes, especially the health insurance I have to buy because I am considered an employee that isn't offered benefits. I went to an accountant, and she didn't know what to do either. I was told to start an S-Corp from a friend in the industry and do "loan-outs" to get a 1099 from film gigs. But I learned to elect your LLC as an S-corp, you should be making over $60k. I also learned to do an LLC you should be making more than $80k.

I made a total of $29k last year ( I did not have the second marketing job yet).

Should I answer "self-employed" or "independent contractor" when asked who my employer is? Should I start an LLC and put everything under the EIN?
Should I stop pursuing my dream to be a filmmaker since the industry is shut down anyway? (lol jk)

Posted Jul 25, 2023, 8:46 PM UTC

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