Thread from 2014:
I received about $2,200.00 sub-contacting work. I also have a W-2 from another employer with whom I made about $16,500.00. How do I go about paying taxes? I don't plan on having deductions, as I was reimbursed for wear and tear and gas for the truck. I want this to be as easy as I can make it. I have a friend who did it herself a few years ago and she said it wasn't too bad. What say GRM?
It's not hard. TurboTax Premier is about $69 (?) and can be found with a $20 discount. It will hold your hand through all the paperwork and generate the proper forms and worksheets for you. I'm sure Block and others have the same service. I've used TT for 10+ years and been happy with it.
Just to make it clear (in my totally amateur opinion here): You don't need to "file a 1099." You need to file your taxes. Someone else sends you the 1099. And, yeah, TurboTax Home and Business is probably what you need. It costs more, but it has the Schedule C business section in it. Premier does not.
OK that makes more sense. I've been banging my head trying to search for a 1099 on the IRS web site. Because the $2400 in work was not taxed in any way, how do I make it right the the Man? Do I need to treat this as business, rather than individual taxes?
I'm not opposed to the tax software, but I have a tax guy who'll do the state and fed for $70.00. I'm just trying to save a few bucks.
If you have a tax guy, you should ask him. You might be able to just put it on your regular return if want to consider it as all taxable income with no deductions to go against it.
And the reason you didn't find a 1099 form on the IRS site is that about 2 years ago they changed the law and all 1099's have to be electronically filed. There are 3rd party services that will do it for a couple bucks each. But, you RECEIVED the 1099, and unless you hired someone else to do the work for you, you don't need to file one.
For the federal return, you need a minimum of three forms. Form 1040, Schedule C-EZ and Schedule SE. You might also qualify for the Earned income credit. You will also need the tax tables in the Form 1040 instruction booklet. Use Google and get them off the IRS web site.
If I were you, I would start with my 1099-MISC and Schedule C-EZ. Follow the line by line instructions and you should be fine.
I can't help you with your state return.
This is looking more and more like I'm gonna say berk it and go to my guy.
Gotta love a culture that has evolved to the point where the average citizen can't even figure out the taxes owed.
95% of my income is from contracting services to a government agency. My contract was subbed out by Kelly services to some podunk, low rent outfit in Texas that seems to mainly provide an army of workers to code medical invoices. I'm the outlier there in every way. In any case, I'm supposed to remit estimated quarterly tax payment, and I've found it impossible to figure out, so last year and thus far this year I haven't. I just nutted up and stroked a big check last April 14th. The penalty was microscopic, as in there was no motivation not to make money with the money all year and eat the penalty.
The other 5-10% of my income is consulting work and small shop work. If the client is big enough that issue me a 1099, I pay taxes. Little stuff that's not invoiced to anyone w/ and EIN# may be forgotten.
Aaaaaaand that's what I needed to here. Thanks, Datsun. (No sarcasm.) Believe me, I just assume that anything government means convoluted, impossible to understand nightmares. Thanks again, really.
Datsun1500 wrote:NOHOME wrote: Gotta love a culture that has evolved to the point where the average citizen can't even figure out the taxes owed.It's not that hard, he's making it hard. He's not self employed, not running a business. Someone paid him for work done, not as an employee. It happens every day. What's the government solution? Confusing forms? Need for a professional? Nope,they ask a simple question, on the regular form. It's line 21 on the regular tax form (1040). It states "other income, list type and amount" That where you put it. That's it. Nothing more. http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/1099-MISC,-Independent-Contractors,-and-Self-Employed/1099-MISC,-Independent-Contractors,-and-Self-Employed-1
Whether it goes on line 21 of your 1040 or on Schedule C depends on a few different things. If the activity is reoccurring, frequent and carried on in good faith to make a profit, I would argue it needs to go on Schedule C and self employment taxes are due. If not, one could make the argument that it belongs on line 21 of your 1040.
Depending on where you live, look into Volunteer Income Tax Assistance (VITA), which is a program to help you file taxes correctly. In short, volunteers and accountants prepare your taxes for free if you make below a certain threshold. Where I'm at it's done through the local university's business school.
The downside: you have to wait in line. Like, a seriously long time.
The upside: free professional tax preparation.
Zombie thread, canoe removed
Weird. I had a Zoidberg moment. A thread? By me? When did this happen?
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