how do i file my 1099 and how much should i put away to save?

Question

My company is giving me a 1099 and i make 1800 a month. i am single and live alone. how much of a percentage should i put away if i wanted to claim 2? and then how do i pay my taxes and when?

Answer 1

If you perform services of only one company, it's almost certain that you are an employee, NOT an independent contractor! The first thing that you should do is grab a copy of form SS-8 from the IRS website, fill it out, and mail it in to the IRS. They will determine whether you are an employee or an IC. But if you work for only one company and are paid a flat amount per month, I'll bet a steak dinner that you're an employee and NOT an IC.

Answer 2

You would file Schedule C along with your 1040. Any profit on Schedule C would also be subject to self employment tax, which is to pay into social security for you.

You should figure on a federal tax rate of 29% to cover both income tax and self employment tax. Use Form 1040-ES to make quarterly estimated tax payments to the IRS.

Note that the above answer assumes you are correctly classified as an independent contractor. Based on the wording of your question, that is a big if.

Your employer cannot choose to treat you as a contractor instead of an employee, rather, the facts and circumstances determine the correct treatment. As an independent contractor, you are covered neither by state unemployment nor workers comp.

Answer 3

Well I am a 1099 and to file it: You need to first at the end of the year 2007 after your last pay of the year get your taxes prepared by a tax preparer or H&R Block. Then ask them how much they think a year you need to save for you and 2 dependents. Then they should have an envelope already prepared with the address to the IRS to mail. This is filing your taxes. Then call the IRS to set up monthly payments, until all of it is paid. You also need to do the same for your state taxes. This is usually ran through the Sheriffs Department of your city.