If i get 1099 at my job, do I have to still file and pay? or is it up to me?

Question

My employer wasnt good at explaining this to me, can you please give me more info, and no smart assess please, it seems there are alot of those on here ...thanks

Answer 1

yes,you have to claim the amount of the 1099 on your tax return ,and pay any applicable tax ,if any.

Answer 2

Your quote, employer, is probably hosing you by misclassfying you as an independent contractor instead of as an employee. I have a canned explanation to apparently clueless independent contractors:

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 employer’s equipment and are paid an hourly rate, or another set rate based on time served, 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. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee'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 this abuse area.

Answer 3

You will need to file your taxes and pay them. Why are you getting a 1099? Do you set your own hours? Do you set your own dress code? If not, you probably should be listed as an employee.

Assuming that your are an indepenent contractor, you need to report your earnings on Schedule C along with any business related deductions. If you have a net profit of over $400, then you will need to file Schedule SE for self-employment taxes.

I'm willing to bet that you are going to have a big tax liability when you file your taxes. You should start planning now to pay interest and penalties.

What you should have done is make estimated payments every 3 months to avoid penalties.

Answer 4

You need to talk to a tax professional. If they gave you a 1099, that is saying you have to file & pay. There is a form from the IRS.... It ask you certain questions that will determin What your filing statis should be. Sometimes employers will not want to pay so they will do this...One of my bosses did this to me.. When I went to file my Tax perfessional directed me. I answered all the questions on the form and I was considered to be an employee, not my own business. If I would have used the 1099, my boss would have saved himself a lttle over 2 Grand which I would have had to pay. You need to make sure for yourself

Answer 5

1. Yes. You still have to file and pay.
2. If it is legal to give you a 1099, then the person paying you is not an employer, you are not an employee, and you also have to pay "self-employment tax", in addition to regular income tax. An "employee" receives a W-2. An "independent contractor" receives a 1099.
3. If you are an employee, then you owe uncollected social security tax, medicare tax, and income tax, but not self-employment tax, and your employer is breaking the law by using the wrong tax forms and failing to withhold and pay the proper taxes.

Answer 6

The employer might have said "it's up to you to file and pay" - that doesn't mean that you have a choice, just means it's your responsibility to do it and he isn't taking out taxes from your paycheck. Depending on just what your job is, that might or might not be legal for him to do - some employers do that just to get out of paying their share of taxes, and that's not legal for them to do.

Answer 7

The IRS gets a copy too.