Ask Terry Questions part time job with holding tax

part time job with holding tax

By Terry Savage on April 03, 2024 | Taxes & Economy

Hello Terry:
I’m 71 years old and retired a little over a year ago. I have income from Social security, and also 3 annuities. I have no debts aside from utilities and taxes. I was approached by a small company to help out part time, a few days a week. I’m interested as I still like the structure of a schedule. Is it better to have a w-2 or 1099 for tax purposes? I’m really not relying on the money from the job.

Terry Says

Are you having money withheld from your Social Security benefit? It might be easier — and more attractive to your prospective employer — if you took a 1099 from the job, and INCREASED your SS withholding rate.
You already have untaxed income from your annuity –unless taxes are being withheld from that payment. So ask an accountant to figure out the total amount you need withheld from SS– or else face quarterly estimated payments the next year.



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