My hubby worked for six months for someone and he didnt take out taxes. He is giving him the form to do taxes in a few days or so. Someone told me that if you make under a certain amount you dont have to file. Is this true if so does anyone know the amount?
2007-01-09 12:26:31 · 7 answers · asked by kristen c 2 in Business & Finance ➔ Taxes ➔ United States
It sounds like 1099 income. That ceiling is $600. You have to report it if it's more than that because even if you don't, that employer will, and then 3 years from now you'll be audited because you didn't report it.
With 1099 you can also deduct some expenses if you are set up as an independent contractor. If you aren't already, just add that income to your regular income and don't bother with the deductions. It gets very complicated.
Long story short--don't ever let someone classify you as a 1099 unless you really are a 1099 and can set your own hours, use your own tools, etc. 1099 screws the little guys because you now have to pay the full 15% social security on that income. With normal employment, the employer pays half of that. A lot of scammers pay people as 1099 when they should be W-2.
2007-01-09 13:14:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, that's true that if you make less than a certain amount you don't have to file, but working under a 1099, the amount is $400, and for six months he surely made more than that.
Under a 1099, you have to not only pay your own income taxes but also a self-employment tax of 15.3% - this is for social security and medicare. So unfortunately, you can expect a big tax bill.
2007-01-09 21:21:00 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If your husband gets a 1099 , he is considered self employed. That means that his job considers him as a sub-contractor. If your husband made over $400 then he is required to file a return. Also, if you are filing jointly, he would need to include any income. If he is able to show the costs that he incurred in 2006 in order to be self employed (tools, uniforms, office supplies, gas, etc.) then he may not owe any taxes.
2007-01-09 21:58:01 · answer #3 · answered by Smart1 3 · 0⤊ 0⤋
If you are considered self-employed (ie 1099) the limit below which that you do not have to file is only $400.
2007-01-09 21:15:34 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
first of all, you will find answers to most tax questions at http://www.irs.gov
second, that is correct, but the amount is really low, about $3500 sounds right, but check the website to make sure
2007-01-09 20:30:46 · answer #5 · answered by relaxin 2 · 0⤊ 0⤋
Its true, check the irs website.
2007-01-09 20:30:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋
it depends on if you have kids. try IRS website
2007-01-09 22:10:31 · answer #7 · answered by Anonymous · 0⤊ 0⤋