2007-01-25 17:13:42 · 3 answers · asked by anthocass 1 in Business & Finance ➔ Taxes ➔ United States
Whether or not you get a 1099 you must file taxes, if the level of your income requires you to.
You will have to complete Schedule C to declare income and any deductible expenses. You will also have to complete Schedule SE to pay Self Employment Tax. This is basically the FICA you would have paid if you were an employee but you also have to pay the "employer's" share as well. So 15.3% of your net income on the Schedule C will have to be paid across to the IRS. I hope your wage rate reflected that.
2007-01-25 23:08:47 · answer #1 · answered by skip 6 · 1⤊ 0⤋
The source of the income doesn't change your filing process (Schedule C), but since this may be a related party transaction, it would be prudent to get proper documentation of the income via a 1099 from the family member.
2007-01-26 00:23:19 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
if you get form 1099, then you have to file self-employment (schedule C) tax form. but if you get paid in cash or a check, then it is up to you to file taxes on them as income......but, like i said, it is up to you to do so or not as cash and personal checks are not traceable and you can say it is not money received from income but payment for a loan they made, etc. etc. etc.
now, if you do not have a form 1099 but still want to file your taxes, just add how much you made and enter it on line 1 (income) on schedule c.
2007-01-25 17:53:21 · answer #3 · answered by Anonymous · 0⤊ 2⤋