I work on their website and they send me a check every 2 weeks for 1200
2007-11-20 08:43:21 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
you will receive a form 1099 listing all your earnings for this year your will have to pay federal and state income tax, FICA, self employment tax on this money. Be prepared this will be about 30 to 35 percent of your total earnings due when you file your taxes.
2007-11-20 08:56:24 · answer #1 · answered by Jan Luv 7 · 1⤊ 0⤋
Any time you earn more than $600 in a year from a company for services rendered (even as an independent contractor) the company has to report it to the IRS and send you a 1099 form. This is for their taxes too. They have to list all expenditures and who they paid for services.
The 1099 form will have your social security number on it and the IRS will know that you earned money and expect you to file your taxes.
Most paid employees have a certain amount "withheld" from their paychecks and sent to the IRS and State towards their income taxes. This way they have "pre-paid" for them a little bit out of each paycheck. When they file their taxes sometimes they find they have overpaid and get a refund. Sometimes they have underpaid and owe a little bit more.
Unfortunately for you, as an independent contractor the company is not withholding for your taxes, so you're going to have to pay everything you owe. You can estimate about 25% to 30% of what you earned all last year.
The IRS will set you up on a payment plan, and most states will too. But if you don't file your taxes you will accrue penalties and interest on the unpaid amount, which will kill you financially. So I'd file and try to make payments. Then next year take about 25% of what you earn and put it in a savings account towards your taxes.
Good luck to you!
2007-11-20 08:57:29 · answer #2 · answered by Anonymous · 2⤊ 0⤋
If you file your return on time, there will (or may be depending on your history) a penalty for not making estimated tax payments during the year. This is small and is roughly equal to interest on the late payments. I'm guessing that on the income you state you will owe about $6,000, mostly self-employment tax (Social Security and Medicare for self employed people) and will be required to make an estimated tax payment of $1,500 on April 15, 2012. The first thing you need to concentrate on is making current tax payments--stop the bleeding. If you pay the current estimate due, you can request an installment agreement and pay about 2% of the balance every month while you stay current. I handle the same kinds of cases that the TV advertisers do only a substantially lower fees. In your case paying fees to them or me would be the equivalent of hiring an attorney to fight a traffic ticket. It would be too costly for what you would get out of it, if anything. If you wandered into my office, I would tell you just what I have written here and send you on your way.
2016-05-24 08:49:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
As an independent contractor, you have to file a return and pay taxes if you make over $399 in a year. You'll need a form 1040 and a schedule C or C-EZ, and schedule SE.
Why would you think you didn't have to pay taxes? You are making income.
You'll pay income tax, and also self-employment tax which will be around 15% of your total income. To avoid penalties for underwithholding, you need to file quarterly estimated returns using form 1040ES.
Depending on where you live, you might also owe state and/or local income tax.
2007-11-20 14:17:28 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Any income needs to be filed on your tax return. You're considered as a 1099 contractor. You're responsible to pay all taxes that's owed during the year.
2007-11-20 08:52:33 · answer #5 · answered by Mrs Apple 6 · 1⤊ 0⤋
Yes, they will also issue you a 1099 misc and report that data to the IRS. You need to pay estimated taxes every quarter. Go to IRS.Gov and download the forms. Be prepared to document your legitimate business expenses at tax time when you fill out your schedule C. You will also pay both sides of FICA .
2007-11-20 11:42:18 · answer #6 · answered by Othniel 6 · 1⤊ 0⤋
Yes you have cos' you aren't part of the company, otherwise the company would pay them.
2007-11-20 08:51:33 · answer #7 · answered by Meneses 4 · 1⤊ 0⤋
you certainly do....all income is taxable
im sure you will receive form 1099 to show how much they paid you during the year
2007-11-20 11:35:15 · answer #8 · answered by goobar121 2 · 1⤊ 0⤋
Of course you have to pay taxes. They are not witholding any, so you have to pay ALL the taxes.
2007-11-20 08:47:38 · answer #9 · answered by Anonymous · 2⤊ 0⤋
I think this is a planted question....
The poster is claiming she makes $30000 a year and she thought it was somehow tax free???
2007-11-20 14:10:36 · answer #10 · answered by Anonymous · 0⤊ 1⤋