2007-01-18 03:50:51 · 4 answers · asked by christibailey22 1 in Business & Finance ➔ Taxes ➔ United States
You received a 1099 for providing childcare? Are you operating a childcare facility?
You file your return using Schedule C. If you are running a daycare facility from your home, you will also use Form 8829 Business Use of Home.
The amount of tax you owe depends on your expenses in earning the amount on the 1099. You are only taxed (income tax, social security, medicare) on the net profit.
2007-01-18 03:56:44 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
ok. here is the deal According to the FBI 62% work for cash and pay no taxes! Of the rest: when thy work with fake SSN they generate W2's. A very small percentage! other are issued ITIN from the IRS which allows them to pay taxes. BUT since ITINs were made for foreign investors they are exempt from most employment taxes such as all SS taxes, unemployment taxes, etc.! That's why employers love them! No taxes for the employer either! Basically if Americans were doing these jobs the taxes paid would be at least 5 times what the illegal aliens pay! For some reason that I can not fathom the pro-criminal groupies think this is a good deal for the US taxpayer!
2016-05-24 03:30:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
not enough information, but since you were paid as a contractor (1099 instead of W-2) you are considered self-employed and will have to pay about 15% in Social Security and medicare.
2007-01-18 04:04:23 · answer #3 · answered by Ovrtaxed 4 · 0⤊ 0⤋
you need a tax professional
2007-01-18 03:58:44 · answer #4 · answered by star 4 · 1⤊ 0⤋