1099 Mortgage Help?

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My husband works for a company that paid him with 1099th It is only there for a month. We tried to apply for a mortgage today. The loan officer said everything is perfect unless it is paid by a 1099th He needs to prove once again benefit the 2010 tax year. Basically, they need to see if he writes something. When he writes all of his less income. The fact is that my husband paid work for nothing. There is no Kosten.Ich am puzzled as to w-2 employees pay for gas. You pay for uniforms and so on. My husband is not independent, it pays only their regular duties at the end of the year. I tried a file ES 1040, but today is the deadline, and we found out today I heard that someone tried to go to the PCA and a form for more deductions a letter from their employer, the company said all the cost is charged, and that it would be illegal if they work all beansprucht.K├Ânnte that leave us? ? Any advice OK let me explain: My husband jobs with this company. You pay for everything. You pay for materials, tools, everything you need. He must pay cards for each subject and so on. It only goes to work. The only thing he could write off would also be gas, but I checked the last time W-2 employees are not paid to get to work by car. So I think the staff falsch.Seine not agree that it would be a letter explaining the situation in detail schreiben.Ok. He is paid on time. They provide him with work every day. He has business cards (Lowes, Home Depot) that he purchased with the hardware. He turns in receipts from Lowe’s and Home Depot, but not of its own costs. It has not been without work since he did, I’m not sure if they find something wrong or hom …

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3 Comments
  1. Reply
    Glenn S
    May 4, 2011 at 1:06 am

    Yes…your husband is self employed. If he gets a 1099 it means he is an independent contractor, or his employer is mis-stating or misusing his employment status.

    His payment stubs from his work place should be sufficient to prove his current income. It is always hard for a self employed person to get a real estate loan. This is one of the few cases that it might be better to use a loan broker vs. a direct lender to get a RE loan. A good loan broker can be more willing to help you more through the loan process. That is why they charge more for a loan. They often put more effort into getting the loan approved.

    Lenders like to see job stability being at the same job for at least two years is a positive, but just because he hasn’t been with the same job that long won’t necessarily disqualify him. If he recently changed companies as long he is doing the same type of work in the same kind of industry in the new job he should still be able to get a RE loan.
    ———————-

    From your additional comments it is obvious that your husband is in fact an employee of this company and the company is breaking the law. The company should be paying for unemployment insurance/workers comp, and withholding state/federal taxes, and paying the majority of his social security.

  2. Reply
    the tax lady
    May 4, 2011 at 1:55 am

    Read this.
    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

    You say your husband is not self-employed, but the company that pays him says he is. You can’t both be right.

    Even if your husband is a contractor on a an accountable expense plan (where he turns in receipts and they actually reimburse him and don’t put the money on the 1099-misc), he’s only been there one month. The underwriter is telling the truth. He can’t tell what income your husband has, what he’ll have month to month and year to year without seeing a tax return.

    Your filing a 1040-ES quarterly payment is a completely separate issue–and won’t make a difference to the underwriter. (If you do need to pay, paying anytime in September is better than not paying at all.)

    As for getting a letter from a CPA, they won’t do it. They can only attest to what’s on a tax return and you haven’t had one to file yet. The company (if he’s getting a 1099-misc, it’s not an employer) won’t issue the letter that says they are paying for everything as it’s further proof that your husband is in fact an employee even though they say he’s not.

    The underwriter is trying to break the news to you that your husband’s income will be entered as $ 0 at this time. Underwriters often want to see 3 years of self-employment before giving you full credit for it.

    Additional info. The money he spends to drive to clients is tricky. The first trip and last trip of the day are called commuting and are never deductible, even for contractors. The intermediate trips are deductible, but require detailed trip logs tracking all mileage.

    I’m still not convinced he’s a contractor. He works for one firm. He has no other clients. They supply all tools and materials. Does he get paid by the hour or by the job? If there’s no work, does he still get paid? He has to have the ability to get more work and make a profit as opposed to an income.

  3. Reply
    My Take on It
    May 4, 2011 at 2:08 am

    The problem you are going to have also is, didn’t you say he just started working for this company a month ago? That isn’t long enough for a lender to consider you for a mortgage.

    You are going to need 2 years of tax returns for him to show what he REALLY makes. Your husband is considered self employed, because when one gets a 1099, they are a contractor and pay all their own taxes. The people contracting for him, or getting him jobs are not paying his taxes or deducting anything out of his checks.

    A letter from the employer won’t help either.

    They need to see his tax returns. When you are self employed or a contractor getting a 1099, the lender does NOT look at your gross income. They look at what you make AFTER you do your deductions. That is why it is harder for self employed or 1099 types to get a mortgage. We have to forgo a lot of deductions and pay higher taxes for a couple of tax returns to prove to a lender we make enough for a mortgage.

    That’s what I had to do when I bought a house.

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