If someone receives a 1099 form which shows that they made 800 or 900 bucks, is it necessary to file taxes for that? I heard that you only have to file if your income is more then 7k in one year.
2007-09-27 09:14:35 · 6 answers · asked by El Yankee 2 in Business & Finance ➔ Taxes ➔ United States
Because you said they "made" $800-$900 I am assuming they earned this money by doing some type of work and it is in box 7 of the 1099. In that case, you must file a tax return to see if you owe any social security/medicare tax (if the money was reported on a W-2 the social security medicare would have already been withheld).
However, you will be filing a schedule C and you can subtract any expenses related to the earning of the $800-$900. If the net income after expenses is less than $400 you won't owe any tax, but you still HAVE to file.
Here's a schedule C so you can see what deductions you might be able to take:
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
You may also have to report the 1099 income to your state and locality. You may have to get a business/mercantile license for your locality. You can find this out easily by calling a local tax prep office like H&R Block.
2007-09-27 09:58:59 · answer #1 · answered by Dee 4 · 3⤊ 0⤋
If you have a 1099, you have to file. Plus pay an extra 15 or so percent on top of ordinary tax. Before you say life sucks, you can write off any expenses related to making the 900 bucks and get that figure down a bit.
2007-09-27 09:21:51 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The higher limit is for income on a W-2. If you have 1099 income or other self-employment income totalling over $399 for the year, you have to file. You'll need form 1040, schedule C and schedule SE.
2007-09-27 09:31:51 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
If your only income is from self employment you must file if you receive $400 or more in any tax year. If you are already paying taxes, you must file any amount of self employment income, starting with the first dollar.
2007-09-27 10:11:49 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 2⤋
file and be sure. I thought it was $400 a year. definitely not $7000.
2007-09-27 09:20:19 · answer #5 · answered by cashmaker81 6 · 1⤊ 0⤋
Yes, you do. You have to file any 1099 that is more than $600.
2007-09-27 09:22:27 · answer #6 · answered by Anonymous · 0⤊ 5⤋