Working as an Independent Contractor (1099)

So, recently I accepted a position as a 1099, Independent contractor, because It paid a lot better than my last job, and I went right into buying a new home, but as I was half way through the process I get informed, by my loan officer, that I need two years worth of 1099 work experience...

Good thing it is a three month contract to hire gig, so maybe I can get back on the W2 bandwagon. Anybody else run into these kind of issues?

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Comments

pramin

Make sure you account for federal and state taxes out of the 1099 check. You should speak to your accountant or whoever does your tax returns.

BlackBeret

Try finding a new loan officer or going with a different mortgage company altogether? I almost had the same issue, fortunately my loan officer informed me that they differentiated between 1099 on a regular salary and those that get a portion from commissions. I'm on my second house now and I've learned that every company has different standards, shop around.

the_Grinch

Yeah I have a buddy who is 1099 and his accountant set it up so that his money is placed into an account with the taxes taken out. From there it goes to his bank account like a normal check thus he doesn't have to think about it.