Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: FieldingMelish One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121096  
Subject: 1099 misc income Date: 3/20/2011 3:55 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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
Print the post Back To Top
Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112775 of 121096
Subject: Re: 1099 misc income Date: 3/20/2011 4:04 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
What was the income for? Was it for self employment? Which box on 1099-MISC was the amount listed in?

Print the post Back To Top
Author: FieldingMelish One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112776 of 121096
Subject: Re: 1099 misc income Date: 3/20/2011 4:14 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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.

Print the post Back To Top
Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112777 of 121096
Subject: Re: 1099 misc income Date: 3/20/2011 5:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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

It 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

Print the post Back To Top
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112780 of 121096
Subject: Re: 1099 misc income Date: 3/21/2011 5:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
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.

Phil
Rule Your Retirement Home Fool

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement