I need 1099 tax info?

Question

I made about $5800 this year and this was on a 1099 - I also made $1800 that was on a w-2. I am a student, but do you think I will have to pay any taxes? I had heard that if it was under a certain amount I was exempt. Is this true?

Answer 1

Based on the information given, you must file a tax return.

If you are not being claimed as a dependent by someone else, you normally must file a return if you earned more than $8,450 in 2006. If you are claimed as a dependent that drops to $5,150. However, the 1099 income means that you must pay Self Employment tax at 15.3% on the net (after business expenses) of that $5,800. Since your have more than $400.00 in self employment income, you MUST file a tax return.

If you have no deductions from the 1099 income, the tax will be $887.00 on that. Unless you had at least that much in tax withheld on your W2 wages you'll owe when you file.