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10-16-2013 08:34 PM
10-16-2013 08:50 PM
10-17-2013 04:16 AM
Do you have steady income for the past 2 years? You will be asked to document your income using pay stubs, W2s, 1099, tax returns, etc. for the previous 2 years. Do you receive other forms of consistent income that you would like to use to qualify - such as social security, 2nd job etc.?
10-17-2013 04:39 AM
10-17-2013 05:11 AM - edited 10-17-2013 05:13 AM
No for the past two years & more I've been in school,I just graduated last year! I'm working in the same field as my degree,I just have an employer who insists on paying me by 1099 even though I've asked otherwise in hopes for a mortgage.
Your job would not fall within the guidelines to be a 1099 type job. 1099's are used for independent contractors that set their own hours and methods. A good example is a sales person that works on a commission basis- so the income is not hourly or salary and is results driven. The general rule is that the payer only has the rights to direct the results of the work and not how or when the independent contractor does the work. Here is a link to the IRS website that gives you the info on the difference between an employee and an independent contractor: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed...
Where this is a difference for you is that you are responsible100% for your income taxes when you are paid 1099 and your employer does not contribute at all. Naturally this reduces the amount of your income right off the top substantially more than if you were a W-2 type employee.
From what you describe, you sound like an employee that needs to be paid on a W-2 basis. An employer can not just decide that you are to be paid on a 1099 basis. There is specfic criteria he and you have to meet in order to qualify. Study up on the criteria and go back into your boss to discuss (obviously you need to know that there are ramifications if you do this - and ramifications if you don't straighten it out, be careful here).
10-17-2013 05:30 AM
10-17-2013 06:16 AM
Take the mortgage out of the thought process for a moment as this is a larger issue than obtaining a mortgage.
He is not paying you under the right basis. You don't meet the 1099 criteria. You are misclassified and the employer will have consequences if caught. Yes, you are responsible for all of your taxes including what normally is the responsibility of your employer. You have the worst of two worlds.
So there is a larger issue here, do you want to continue to work for someone that clearly isn't handling his business in the proper way and get caught up in the penalties? Or do you want to have a very frank discussion with him to straighen out this error in judgement? Or just find a job where the employer does what he is supposed to do? Look at the long term.
10-17-2013 06:38 AM
10-18-2013 06:34 AM
I am a nurse and worked agency, 1099 debacle... according to the IRS that was wrong. I just graduated and school counts as part of your two years. Do not have loyalty to a lender. When someone tells you no, find the yes man.