what percentage is taken out if I received a 1099 tax form? Let's say from $1000 to make it simple.
2007-01-19 17:37:46 · 4 answers · asked by waterbear 1 in Business & Finance ➔ Taxes ➔ United States
It's 15.3%, but you don't pay on quite all of it, you pay the 15.3% tax on 92.34% of it though. Would be $141.28 on $1000.
2007-01-19 18:01:20 · answer #1 · answered by Judy 7 · 0⤊ 2⤋
When you receive a 1099 Miscellaneous, it is usually for contract labor. That means you have to pay your social security plus the amount an employer would have paid for you-total about 15.2% on your net wages. You use form SE to figure your social security. You pay this on your net wages. You are allowed to deduct your expenses for working on form C to get net income. You must have paper back up-receipts for these expenses. You are allowed a deduction on the front of Form 1040 for half the SS you pay. You then figure your income tax and add it to the social security you owe. When you have 1099 income, the first year you do not have to make estimated tax payments. If this is your second year and you have not made these payments, you will owe a penalty figure that on form, I think, 8810. Buy a tax program, they can help you out. If you are really lost, just get your taxes done.
2007-01-19 18:18:44 · answer #2 · answered by towanda 7 · 1⤊ 0⤋
you have to make more than 5100 dollars before they take anything i made fiteen grand on 1099 and because i have one kid i get 1000 back even though i never paid in a dime
2007-01-19 17:44:56 · answer #3 · answered by skytzo ! 3 · 0⤊ 3⤋
Like wages, withholdings on a 1099R can vary, depending on what you tell the bank or invst co. to withhold for you.
2016-03-29 05:48:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋