1099-misc tax return filing help?

My answer assumes you live in the United states. If you worked for one company as a "temporary employee", the company should have paid you WAGES reported on a W-2, not income reported on a 1099-MISC. As you describe it, you were a (common law) employee. (see link below for detailed information on Independent Contractor vs. Employee)

"Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms." http://www.irs.gov/newsroom/article/0,,id=173423,0...

However, you're now working for this employer. You may want to tread lightly. Or you truly were an independent contractor. You can claim the 1099 income on a schedule C Profit & Loss from a Business. The company is then a "vendor". Be sure to claim all the business related expenses incurred while working for the company as an "independent contractor".

Deduct mileage, office and general supplies, travel expenses, cell phone bills, costs for business cards, etc. Did you have a home office? You may be able to claim a home office deduction. A computer (you purchased) used for this "business"? Expenses that as an "employee" you cannot deduct from your income. But as an "independent contractor" you can. You'll pay Income taxes and Self Employment (SE) taxes on the "net income" - what's left over after deducting all business expenses. SE is the equivalent of social security & Medi-cal (roughly 15.3 % of the net income), a portion of which your the company as an "employer" would have paid on your behalf.

http://www.irs.gov/faqs/faq/0,,id=200194,00.html

A good tax software program like Tax Cut or Turbo Tax can help you calculate these deductions. Be sure to answer that your mileage records are in writing. You can recreate them on a calendar for all the days/miles you drove. (from a blackberry or pda?) Check your oil change records for beginning & end of year mileage. Gather all receipts, credit card charges, cleared checks, anything that can substantiate business expenses.

Hire a trained tax professional to help you if feeling overwhelmed.

And one final word of caution. IF an employer is "caught" paying employees as "independent contractors" (yes, the IRS looks for this), your "vendor" (employer) will have to pay his/her share of employers taxes and may also have to pay the amount of withholding tax that should have been deducted from payments made to you.

If this happens, you will be issued a W-2 to replace the 1099. Your income will be "grossed up" to include taxes the employer didn't collect or pay on your behalf (income taxes & the employee's share of Social Security & Medi-cal). The business expenses reported on your Schedule C will be disallowed. The only good news in this scenario is that you won't owe SE Tax either and all taxes you paid will be applied to the adjusted taxes due.

http://www.irs.gov/businesses/small/article/0,,id=...

Without knowing how much was withheld during the last 6 months of the year, your filing status, exemptions, any deductions you may be able to claim on a Sch. C, etc., it's impossible to determine how much you may owe.

Good luck.

If you are a DIY kind of guy you need to read publication 583 "Starting a Business and Keeping Records." You also need to read the directions for Schedule C. As a subcontractor you are in business for yourself, and need to keep business records - of income and expenses. The IRS will not accept the excuse that you did not receive a 1099, so you could not report that income. The IRS requires you to report all income whether illlegal or legitimate, whether reported to them on a 1099 or not... The 1099 is really a communication tool between the business who hired you and the IRS. If the IRS audits his records, and he did not send you a 1099, then the IRS can disallow an expense deduction on his tax return for what he paid you. They can also fine him for not filing each 1099 he was required to file. FYI - The IRS has identified under reporting of 1099 income as one of their areas to track down. They are also partnering with the states to communicate about 1099 income that really should be reported as wages on W-2's. The Feds want to collect their social security and the states want to collect their unemployment taxes that are being under paid.

That sounds right. File, and pay the money.