What happens if you don't pay Social Security? But you still file.?

Question

If you have a 1099 misc. and you file but do not pay the SS, do you get a penalty?

Answer 1

If you file your 1099 and you do it correctly, it is going to include the amounts owed to SS and Medicare. It is part of the tax structure.
Unfortunately for the Self-Employed, that is 100% on you. When you work for a regular employer under a W-2, they pay 1/2.....

good luck

Answer 2

If you get a 1099 Misc, for work you did, the government will assume you are self employed. Self employed people are supposed to file a Schedule C to report their gross income and business expenses. - Social Security is then calculated based on the Net profit. You should file a Schedule C and think about the deductions that you could claim to offset the income. If you come up with enough legitimate deductions, you might even be better off than if you be if you just tried to convince the government that you did not receive self employment income.

Answer 3

Not immediately.

A letter from the IRS will be sent to you, requesting an explanation of why you did not file a Form Schedule SE with the return.

If you ignore the letter, eventually, within 3 months they will send you a bill, estimating the amount of self employment tax due, and add penalties and interest to it.

Answer 4

Yep, you'll get a bill. Penalties will be included if it's after the filing deadline. And if you've underpaid by more than $1,000.00 in total there will be penalties and interest for underpayment as well as late payment.

Keep in mind that it you don't pay SS taxes, you'll get NOTHING from Social Security if and when you need it.

Answer 5

Yes you do pay a penality. This is treated just like not paying your income tax in full.
but best to file on time anyway,, and pay all you can.