A 25 year old, filing as single, with $8100 total on two 1099 misc income forms. Nothing withheld, no w-2's or other income. Turbo Tax says no income tax but do I owe Social Security Tax? If so how do I pay it?FM
What was the income for? Was it for self employment? Which box on 1099-MISC was the amount listed in?
All the income was posted in box 7. The companies considered her a nonemployee. When the standard deduction and personnel exemption were applied they were larger than the income total. The work was in an area that she does not want to make a career of.
All the income was posted in box 7. The companies considered her a nonemployee. When the standard deduction and personnel exemption were applied they were larger than the income total. The work was in an area that she does not want to make a career ofIt sounds like she might need to report this on Schedule C, which would mean that self employment taxes could come into play. At the same time, she'd be able to deduct business expenses as well.The fact that she doesn't want to make a career of this doesn't make a difference, as far as my understanding of self employment goes.Hopefully one of the pros will chime in later with a more definitive answer. There's probably a bunch of other important questions I'm missing. I've never had to do Sch C myself, but my roommate did a few years back while he was between jobs and did a bunch of contract work.WRJ
All the income was posted in box 7. Report on Schedule C of the 1040. Since you're using software that will generate Schedule SE, which is how the Social Security/Medicare gets paid. Schedule M for the Making Work Pay Credit should also generate automatically. Finally, if the person is between 25 and 65 and I recall the total correctly, there will be a small Earned Income Credit also.PhilRule Your Retirement Home Fool
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra