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    meggood1981's Avatar
    meggood1981 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 15, 2011, 09:49 AM
    1099 misc income and EIC?
    My boyfriend will be receiving a 1099 misc for about $14,000 for self employment. We have lived together for 15 years and have 3 children that are qualified for EIC. I did not work in 2010. This is our total household income for 2010. There are no expenses associated with his work. He installs floor covering.
    My questions: Will he be able to claim the EIC and if so will those credits offset what he will owe? No taxes were paid in 2010. Will he receive a refund at all, or will he still owe? Is he able to claim me as a dependent also? What is the best way to file? Is it possible to efile online without going to a professional?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jan 15, 2011, 09:52 AM

    One of you with higher AGI can file as head of household and claim the children. Other will file as single.
    One who files as head of household will get fat refund.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 15, 2011, 09:03 PM
    To answer your question, the combination of the Earned Income Credit and the $1,000 Child TaxCedit per child WILL more than offset any self-employment taxes owed on $14,000 in contract income.

    He will need to file Form 1040 with a Schedule C and SE, but not INCOEM taxes will be owed, and if he claims NO expenses at all, his self-employment tax will be about $2,100. The EIC and Child TaxCredits will probably exceed $6,000, completely offsetting the $2,100 in SE tax.

    Contact me at [email protected] if you need professional help filing.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Jan 15, 2011, 09:14 PM

    Of course as a self employed person, he should have all type of business expenses, from business travel, tools, and more.

    The experts here should have some good ideas of what.
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