I recently accepted a contract position and my recruiter has encouraged me to do claim 1099 for the rest of this year since I have been out of work and need the money. Could someone please explain or direct me to a spot where I can find more info?
2006-10-21 03:06:16 · 7 answers · asked by Susan B 2 in Business & Finance ➔ Taxes ➔ United States
You don't file a 1099, the person pay you does. If you are an independent contractor the person you are working for has to file a 1099 with the IRS and provide you with a copy for your tax filing. You still file a 1040, but you report the 1099 income on your return. Unfortunately you will pay more taxes on this income has you have to pay the social security and medicare taxes on this income for both yourself and the "employer". If you could get a job as an employee you may make out better, but that all depends on how much they are paying you.
If you want to find out more information you can find it at www.irs.gov
2006-10-21 15:52:52 · answer #1 · answered by BHWMST 3 · 0⤊ 0⤋
If you are the contractor, you don't file a 1099. The 1099 form is used by the person/company with which you contracted to report to the IRS and you how much they paid to you. Since they are treating you as an independent contractor instead of an employee, they are not withholding taxes. You are required to pay self-employment taxes which include the portion of social security taxes normally paid by the employer. You need to consult a tax professional, and the recruiter is obviously not one.
2006-10-21 07:27:25 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
nicely, when you consider which you already filed your W-2's you will ought to amend that return to incorporate the 1099. you need to document all your earnings on the comparable return. you will ought to fill out a paper 1040X and mail it in for the modification - you may no longer do it on line. For the 1099 you will additionally fill out a schedule C or C-EZ, and a schedule SE. On $1500 on a 1099 you will pay around $212 for self employment tax besides to earnings tax. The earnings tax will count number on your different earnings yet will in all probability be someplace between $one hundred fifty and $225. if your finished earnings is intense, it ought to be extra beneficial than that.
2016-12-08 18:27:53 · answer #3 · answered by slagle 4 · 0⤊ 0⤋
See general instructions for 1099
2006-10-21 03:14:34 · answer #4 · answered by SDD 7 · 0⤊ 0⤋
1099 reports to you independent contractor INCOME for the year with no income tax withholding taken-out (SSA, TAXES, STATE, MEDICARE, etc.) so you report this INCOME on Sch. C of your 1040. See IRS web sight www.irs.gov or Publication 535 for more information.
2006-10-21 04:47:14 · answer #5 · answered by Bryant 1 · 0⤊ 0⤋
When you file 1099 you take out your own taxes and you generally dont have benifits offered.Find out if they are going to take Social Security out on you.You can also go to the feds site IRS.com
2006-10-21 03:20:23 · answer #6 · answered by mdman69_99 2 · 0⤊ 0⤋
www.irs.gov
1099, or contract labor employees, are responsible to pay all of their own taxes. That includes social security and medicare. It is not always (usually not) a benefit to the employee. It is always a benefit to the employer, (less taxes for them to pay). Research this on www.irs.gov before you accept.
2006-10-21 03:10:27 · answer #7 · answered by krissy4543 4 · 0⤊ 0⤋