This won't be an issue until next tax season, but I started to grade essays online for a company this year, and they consider me "contract labor." If I earn over $600, they say they will issue a 1099 form. How will I have to go about reporting this income on my 2007 tax return?
2007-02-24 01:23:29 · 3 answers · asked by waefijfaewfew 3 in Business & Finance ➔ Taxes ➔ United States
Do NOT just list the income on line 21! That's not the proper place for Self Employment income!
File Schedule C or C-EZ with your tax return to account for the income and any business expenses against it. File Schedule SE to calculate the Self Employment tax. SE tax is levied at 15.3% of the net profit from the business activity.
You need to report all income even if you don't get a Form 1099. You need to pay SE tax if you had $400 or more in SE income during the year.
If this turns out to be a significant amount of money you should either adjust your withholdings at your W2 job if you have one to cover the additional tax due, or you should make quarterly estimated tax payments using Form 1040ES.
Planning now for the future tax impact is a smart move; many independent contractors fail to do that and are shocked by the taxes, penalties and interest that they're hit with when they file their tax returns.
2007-02-24 01:34:17 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
would not sound such as you fill out the cost of goods offered until eventually this hard artwork is for something you manufacture. settlement hard artwork and royalties paid are costs to the partnership. then you fill out the schdule ok area of 1065. After that each considerable different gets a schdule ok-a million. the human beings you paid settlement hard artwork to and the royalties get carry of a 1099-Misc.
2016-09-29 13:33:49 · answer #2 · answered by ? 4 · 0⤊ 0⤋
There is a line on form 1040 for misc. income, this is where you report 1099 income.
2007-02-24 01:31:38 · answer #3 · answered by ? 7 · 0⤊ 9⤋