How much on TAXES???

Question

So at my current job my boss doesnt deduct taxes and I asked him what was up he said he was going to 1099 me. I was wondering if anyone could tell me what my taxes would be if he paid me $4800 from Sept-Dec 2006?

Answer 1

did you have another job during the year? what's your total income?

if 4800 is all you earned last year, you might be able to get much more back,

Also are you an employee or an independent contractor? if you are a employee and your boss treats you if you were an independent contractor, he is cheating you by not paying the employer part of the payroll tax which is about 7.65%.\

check on that

Answer 2

Well, the truth is... if he'd listed you as a W2 employee, you probably wouldn't owe a dime (if that's all the income you made for the year.)

However, he would have had to pay the employER's side of the taxes. (Most people don't realize that employers are paying as much taxes on top of your wages as you're paying in your own taxes.)

Since the employER's taxes haven't been paid, you'll have to pay what's known as "self employment taxes" on the money.

And self employment taxes aren't the kind you can get around with deductions, etc. So, you're pretty much struck with that. (I believe self employment taxes are a flat 15%, but I've been doing my own on Turbo Tax so long I haven't looked at the actual number in awhile.)

Next time you should REALLY check to see whether you'll be a W2 or 1099 tax status. You're going to find that it makes a LOT of difference on your taxes.

Answer 3

The taxes on the earnings depends on your other income in 2006. If this is your only income, then you do not owe income tax, but you will have to file a return and pay Social Security and Medicare taxes.

You will file a Schedule C. Since you are not an employee, but an independent contractor, you can deduct all expenses as listed on Schedule C, including your mileage. Hopefully this will reduce your net income, because the Social Security and Medicare is going to be about 15% of your net income.

The SS and Medicare taxes are computed on Schedule SE. If you have no expenses, these taxes are about $720.

Answer 4

Well, simply put, you could figure this out for yourself. If you use a 1040 to calculate your taxes, using 0 for all of your deductions, you can figure out if you owe or are owed. However, when you have any doubts about the process, I would consult a tax professional. H&R Block's personal tax service is quite easy on the tax beginners, and you can learn enough from them during the first two or three years of filing with them to learn how to do it yourself.

Also, you can get your tax expenses reimbursed to you. Go to the site below, fill out the necessary information, and they will send you a check for your tax expenses. If you owe this year, they will even pay for a portion of your owed taxes!