Thank you so much for all the help!

Here is the deal. I worked for an employment agency for three months. The lady said she pays all the taxes on my income, so I received a flat $10 per hour, clean. This was my only income for the year.

She mailed me a 1099-Misc with Non-employee compensation (box 7) in the amount of 4370.

The only other tax document I have is a 1098-T for tuition. I was billed 47K in tuition, minus 13K in grants.

It says the federal taxes owed is $365! This is in the form of self-employment taxes. How did this happen? I was sure I was not paying taxes!

Any help would be incredibly appreciated.

For the ageny you worked as independent contractor and the employer did not withhold any taxes from your pay check so you will pay it now.

1099-misc (nonemployee compensation) income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). For this you will use schedule SE (Form 1040). Even though schedule C treats you as a self employed, which may not be correct for you, this is how you report this income. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)

The lady said she pays all the taxes on my income, so I received a flat $10 per hour, clean. This was my only income for the year.

She mailed me a 1099-Misc with Non-employee compensation (box 7) in the amount of 4370.



She lied to you. If she gave you a 1099 she didn't pay ANY taxes. So now you have to.

Agree with Scott, she is not "paying" any taxes on you, and you were not paying any taxes in. You were treated as a self employed person.