Comments on: can someone explain to me what a 1099 form is regarding taxes? http://www.hopefromdebt.com/uncategorized/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes There is hope for people with debt issues Wed, 10 Mar 2010 07:17:49 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Ed Atun http://www.hopefromdebt.com/uncategorized/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes/comment-page-1#comment-256 Ed Atun Mon, 29 Jun 2009 13:21:59 +0000 http://www.hopefromdebt.com/1099-form/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes#comment-256 Any income you earn for any reason in the USA , over $599, should generate a 1099 form for IRS to show that money was transferred. This is usually used for independent contractors who are not on a fixed salary. They get a W2..<br><b>References : </b><br> Any income you earn for any reason in the USA , over $599, should generate a 1099 form for IRS to show that money was transferred. This is usually used for independent contractors who are not on a fixed salary. They get a W2..
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]]> By: Steve D http://www.hopefromdebt.com/uncategorized/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes/comment-page-1#comment-255 Steve D Mon, 29 Jun 2009 12:50:59 +0000 http://www.hopefromdebt.com/1099-form/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes#comment-255 A 1099 form means that they consider you an independent contractor. As an independent contractor, you will be responsible for paying your own income taxes, social security and medicare payments, and any other required payments (local taxes, state taxes, etc.). At the end of the year, they will send you a 1099 that will have on it all the money they paid you and you will use this in place of the W-2, which employees get. As an independent contractor, you should be making quarterly estimated tax payments to the IRS. If you choose not to make the quarterly payments, be prepared to make a payment to the IRS when you file your 2009 taxes. Since you remain liable to pay income taxes, and nothing will have been withheld, you will have to make them up all at once (which is why quarterly estimated tax payments can help ease the burden). If you plan on staying at this job, I would recommend you see a tax accountant who can set you up so you can avoid the end of year hit. (Just as an example of the hit, if you choose not to make quarterly payments and you make $20,000 this year, you will pay over $1,400 in social security and medicare payments alone at the end of the year, and probably significantly more in federal, state and local taxes.)<br><b>References : </b><br> A 1099 form means that they consider you an independent contractor. As an independent contractor, you will be responsible for paying your own income taxes, social security and medicare payments, and any other required payments (local taxes, state taxes, etc.). At the end of the year, they will send you a 1099 that will have on it all the money they paid you and you will use this in place of the W-2, which employees get. As an independent contractor, you should be making quarterly estimated tax payments to the IRS.

If you choose not to make the quarterly payments, be prepared to make a payment to the IRS when you file your 2009 taxes. Since you remain liable to pay income taxes, and nothing will have been withheld, you will have to make them up all at once (which is why quarterly estimated tax payments can help ease the burden).

If you plan on staying at this job, I would recommend you see a tax accountant who can set you up so you can avoid the end of year hit.

(Just as an example of the hit, if you choose not to make quarterly payments and you make $20,000 this year, you will pay over $1,400 in social security and medicare payments alone at the end of the year, and probably significantly more in federal, state and local taxes.)
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]]> By: bozotexino http://www.hopefromdebt.com/uncategorized/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes/comment-page-1#comment-254 bozotexino Mon, 29 Jun 2009 12:32:59 +0000 http://www.hopefromdebt.com/1099-form/can-someone-explain-to-me-what-a-1099-form-is-regarding-taxes#comment-254 a 1099 is a tax form for labor paid it doesnt with hold taxes you are responable for taxes at the end of year<br><b>References : </b><br> a 1099 is a tax form for labor paid it doesnt with hold taxes you are responable for taxes at the end of year
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