I recieved mine and my husband W2 taday and I am confused, I was on unemployment in the beginning of the year ( in PA)and had that check w/o takes taken out it is under $2000 will I have to pay taxes on this, I recieved a uc 1099G. Also, my husband has two jobs and the one job his w2 says nonemployee compensation for $3000 there are no taxes taken out so will we have to pay tax on this too!!!
2007-01-25 12:26:54 · 5 answers · asked by Jody 6 in Business & Finance ➔ Taxes ➔ United States
Yes you will pay taxes on all of the above.
2007-01-25 12:34:21 · answer #1 · answered by justme 6 · 1⤊ 0⤋
Yes in both cases. Unemployment compensation is taxable.
On the "nonemployee compensation", was that a W-2 or a 1099? Yes, it will be taxable. And he will also have to pay self-employment tax of 15.3% on it.
Good luck.
2007-01-25 13:05:30 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Unemployment is taxable. Income as an independent contractor (form 1099) is taxable. On this income you get a double whammy on the taxes since you have federal & state PLUS self employment taxes of 15.3%. This is the same as social security and medicare from your paycheck but since there is no employer that is matching the FICA & MC, you get to pay it.
2007-01-25 13:25:11 · answer #3 · answered by Dizney 5 · 0⤊ 0⤋
If it says "non-employee compensation", he must have been working as an independent contractor. For this income, you will need to file a Schedule C with your return. There you will list the income, but you can also deduct any business-related expenses pertaining to that income. With the Schedule C, comes Schedule SE, which is the self-employment tax, which amounts to 15.3% of the net business income.
2007-01-25 12:38:01 · answer #4 · answered by crazydave 7 · 1⤊ 0⤋
Yes and yes. Also the $3,000 nonemployee comp your husband received will also be subject to self employment tax as well.
2007-01-25 12:47:20 · answer #5 · answered by jseah114 6 · 1⤊ 0⤋