I only made $20,000 in 2006. It was a 1099. Will I owe any taxes?

Answer 1

Yes. You need to file NOW!

There are penalties both for failing to file a return and failure to pay. At least get the clock stopped on failing to file quickly.

Since you got a 1099, the IRS got a copy of it too. They will be after you as soon as they cross check and find that you did not file.

Do not delay! The penalties and interest charges can be substantial.

Answer 2

Yes, and possibly quite a bit. File Schedule C or C-EZ to calculate your net income. Then file Schedule SE to calculate the Self Employment tax on that income at 15.3%. The totals from those 2 schedules go to the appropriate lines on Form 1040 and you calculate your taxes in the usual way. If you don't have much in the way of expenses on Schedule C, the SE tax could exceed $3,000 all by itself.

If you didn't make quarterly estimated tax payments using Form 1040ES, you'll have penalties for underpayment of taxes.

And if you haven't filed your return yet, you'll have penalties for late filing and interest and penalties for late payment of tax. Your debt will grow every day that you delay.

It is too late to file for an extension; the deadline for that was April 17th, or April 26th if you live in the northeast areas affected by the storms during the week of the 16th.

Answer 3

You have to clarify your question. You received 20k gross in 2006 on a 1099. Now, what are the expenses you have in relationship to earning this 20k? Get a federal Sch C and run down the items appearing there; advertising, vehicle expense, insurance, meals, supplies, tools, rent of equipment or building, cell phone, etc. You may even net out at a loss. Go to IRS.GOV to download forms or visit your library to obtain same.

Answer 4

You probably will owe something, possibly quite a bit.

First of all, it depends on what expenses you have that are eligible to be deducted from the $20K - after those are subtracted, you'll owe 15.3% of what's left for self-employment tax for social security and medicare.

Then depending on your filing status and a number of other things, you might owe income tax also and probably will.

If you owe taxes, you're already late filing, and owe additional penalties for failure to file and for failure to pay, as well as interest on the unpaid amount. These charges will continue to accumulate until you have this taken care of.