My gf has reecived her sole small income on a 1099-MIsc form for 2006 - less than $20k. She obviously is going to have to pay taxes on it and will wind up owing money. She was a full time student last year and is full time student this year and actually does not even work anymore - she just lives off of school loans. Can the IRS collect money off someone who is a full time student, unemployed and living off government loans?
2007-02-14 02:47:12 · 6 answers · asked by Rob D 2 in Business & Finance ➔ Taxes ➔ United States
To those have have answered below - I figured as much, so then as a follow up - How long does the IRS give to pay back the taxes on a payment plan?
2007-02-14 05:34:52 · update #1
She can either pay it now, or owe it to them with interest. They'll set up a payment plan. The length of time to pay it will depend on her ability to pay, and her ability to negotiate.
2007-02-14 08:09:05 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Just make sure to remember that if you have a 1099 misc with an amount in box 7 which is for nonemployee compensation, you must file schedule C and pay self employment tax if you have a profit !!
2016-03-29 06:12:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Why not?
The IRS has ten years to collect a tax after it has been assessed. I assume that she will be out of school in the next ten years.
If she as a bank account, the account can be levied.
What she should to is file the return and enter in to a payment arrangement. Tuition expenses can be used to offset income tax but not self-employment tax so she may not owe as much as she thinks.
2007-02-14 03:14:15 · answer #3 · answered by Wayne Z 7 · 1⤊ 1⤋
She has to report the 1099 Misc income on her tax return, it would be reported as self employment income and she is responsible to pay the SE tax on that money
2007-02-14 03:22:44 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Of course they can. She should have made estimated tax payments throughout the year. Poor planning. She should ask an accountant about the Tuition & Fees credit. It may help reduce what she owes. Plan better this year.
2007-02-14 03:23:01 · answer #5 · answered by Shannon L - Gavin's Mommy 6 · 1⤊ 2⤋
Of course. If she didn't make estimated tax payments as she should have, she will have to bear the consequences.
2007-02-14 03:21:14 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 1⤋