First Time 1099?

[titus_fan_05]

What is the name of your state (only U.S. law)? Arkansas

Okay, so until this year I was working for my employer as an actual employee, but this year she cut back and I'm the only one working, and it off an on again work. She told me I would be an independent contractor (I've only done work for her) and I would have to do a 1099 this year. I understand that this means I pay my own taxes at the end of the year, but I keep reading these outrageous amounts people are paying so I'm kind of freaking out. So, far this year she has paid me $11,000 I'm single, but my fiance can/has claimed me on his tax returns so I'm not a head of household or anything and I have no dependents. Any idea what I can expect to pay this year? Oh, and this is the only job I have, so there won't be any other type of income to list.

 

[davew128]

Crystal ball is hazy and doesn't do math. Try again in March. And by the way, if you're making $11k, your fiance' has no business claiming you on his tax returns.

 

[FlyingRon]

No you SHOULD me making the quarterly estimated payments NOW so that when you file after the end of the year you won't owe money. You will owe whatever the federal and state and local tax brackets are for your income level plus the self employment tax. You might want to sit down with someone who knows taxes with your last years tax return (you did file one?) and your stubs or record of how much you have been paid so far this year (and expect to be further paid through December).

 

[davew128]

No you SHOULD me making the quarterly estimated payments NOW so that when you file after the end of the year you won't owe money. You will owe whatever the federal and state and local tax brackets are for your income level plus the self employment tax. You might want to sit down with someone who knows taxes with your last years tax return (you did file one?) and your stubs or record of how much you have been paid so far this year (and expect to be further paid through December).

I wholeheartedly DISAGREE. The reason for making estimated payments is to avoid an underpayment penalty. There is absolutely no TAX reason to pay more during the year and not owe in April if you meet certain safe harbor standards to avoid that penalty, one of which is owing less than $1,000 in April......

 

[FlyingRon]

You're quite right. I missed the fact that her entire income from all sources was only $11,000.. Hell she may even get money back.

 

[irsos]

You're quite right. I missed the fact that her entire income from all sources was only $11,000.. Hell she may even get money back.

If nothing has been paid in it wil be hard to get a refund unless she has one or more children. Self-employment tax will be 15.3% of her net and it does not sould like she has much, if any, expenses to get the amount on the 1099 down significantly. she is very likely to owe.

I agree with an earlier comment - the fiance may NOT claim her.