i didn't file for 3 years(04-06). my total earnings for those years are around $90,000. How much will I owe?

Question

I was 1099 status as independant contractor. Lots of expenses too

Answer 1

This may very, depending on your itemized deductions, number of dependents, interest and penalties. See a professional income tax preparer, such as Jackson Hewitt, H&R Block or the like.

Answer 2

Were you a bonafide independent contractor or a victim of your employer?

I have a canned explanation to apparently clueless independent contractors that I post here frequently.

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employers equipment and are paid an hourly rate, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired.

If you decide you should have been treated as an employee, when you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in the abuse area.

Another issue: You will have to file your 2004 return by next April 15 or you will not get Social Security credit for your earnings although you would still owe the tax.

Answer 3

No possible way to say without knowing ALL of the numbers. I'm not a mind reader!

But here's the worst case scenario. It could go as high as $4,230 per year for the self-employment taxes plus another $2,800 or so for income taxes for a total of a bit over $7,000 per year. Then you can tack on penalties for late filing plus penalties and interest for late payment. Those could nearly double the total. So, worst case, around $42,000.

Answer 4

I bet you will have a hefty fine to pay. How do you go 3 years making that amount of money without filing??? You will need to go back for each tax year and file and figure out your taxes for each year. This will include you going through your expenses to see what you can deduct. Good luck. You're gonna need it.

Answer 5

Without knowing approximately how much your expenses were, and your personal situation (single? married? any dependents?) no way to tell. Whatever it would have been if you had filed on time, there will be substantial penalties, and interest, added.

This would be something you should take to a real accountant, like a CPA, not to H&R Block or Jackson Hewett.