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Do I have to file both state & federal taxes?
I am an independent contractor in the state of Wisconsin, when I file my taxes, I will get a 1099-Misc form, do I have to file both federal & state or just federal? Also, what tax form do I use?
8 Answers
- HerrmannLv 78 years agoFavorite Answer
You always have to file Federally if you have a tax liability or other reason for filing. If your state has an Income Tax, same thing.
If your TOTAL income is from the 1099-MISC and it is less than $400, then you do not have to file. If it is more than $400, you will not owe income tax, but you may owe Self Employment Tax. This is the self-employed equivalent of Social Security/Medicare ad is both the Employer's and Employee's contributions. As self employed you are considered both employer and employee.
- 8 years ago
Many states are similar in this area. As an independent contractor, you may be catagorized as "self-employed". You will need to file both State and Federal Forms and pay taxes on your income. However, you will want to fill out a Profit and Loss form also. You will have qualifying deductions. Also, you will want to pay into social security and Medicare. It's best to see a repitable tax service for filing. It will cost you, but it will be done right.
Source(s): Social Security.gov/ self employed workers. - shoredude2Lv 78 years ago
Unless you live in one of the handful of states without a state income tax, you would file a state return in addition to you federal one. Wisconsin has a state return.
And if you lived somewhere that had a local income tax return (mostly in Ohio and Pennsylvania), you would have to file a local return in addition to the other two.
- Cathi KLv 78 years ago
Federal yes. It depends on your states filing requirements. Most likely for state.
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- troLv 78 years ago
of course
you use the normal Wisc tax form, it very likely like most states forwards the information from your 1040 to the Wisc and you proceed with the state standard deductions and personal exemptions
- ?Lv 45 years ago
No problem. you do not could document both Federal and state at the same time. oftentimes, human beings could document Fed, and in no way could document state in any respect. you could E-document Fed and mail contained in the state.