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1099 information....started working with a guy, but i am not on his payroll. i get a from him at months end!?

he said he will have me do an 1099 form....what exactly is a 1099 form, and do I have to file taxes using it? how would taxes be taken from me? can anyone verify that i am working if i am on a 1099? is this reported?

This is all new to me, so i am curious...

i will only be working for him like 8 hrs a week... during some computer work!

5 Answers

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  • Lynne
    Lv 6
    8 years ago

    You will be called an independent contractor for tax purposes. You are being treated as a person who is self employed. Therefore, you will need to complete a schedule C and schedule SE when you do your federal income tax return.

    This guy will not take out or pay any taxes. In other words, if he is paying you$10 an hour for 8 hours, you would get $80 flat.

    You will be responsible for the taxes yourself. The biggest surprise to people sometimes is the self employment tax which is about 15% no matter how low your income. You might or might not owe additional federal, state and local taxes depending on your total income and where you live.

    If the amount you will owe the IRS is less than $1000, you have the option of just setting it aside and paying next spring with no penalty. If you are going to owe more, then the IRS would recommend your make estimated quarterly payments.

  • 8 years ago

    A 1099 is a piece of paper that says how much you were paid.

    You do have to file taxes, but not because of this form. You have to file because you were paid to do work. Even if he did not do the form, you would need to file, because you were paid to do work.

    Taxes are not "taken" from you automatically. You have to send the taxes to the government yourself.

  • 8 years ago

    go to irs.gov and in the search box click on contractor. sounds like you are an employee and he is avoiding paying payroll taxes. you need to see the definition of an independent contractor. he then issues a form 1099 and you pay both ends of payroll taxes plus you will then file on a schedule c. there are many expenses to be deducted on a schedule c like telephone, auto, insurance. you choose which is best for you after you search on irs a schedule c.

  • 8 years ago

    If you are not an employee but you receive payments for service you provide, you will receive Form1099MISC with the amount of payments noted. This information is furnished to the IRS and is included on your tax return. Any tax owed on this income will be paid when you do your tax return, or you can submit payments in advance using Form 1040ES.

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  • tro
    Lv 7
    8 years ago

    a 1099 is issued to you as an independent contractor, no taxes are withheld, you are responsible for you own

    you report this income on Sch C and SE with your 1040

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