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taxesfordummies
Feb 18, 2010, 05:37 PM
I did handwork for a printing company on an as needed basis. I got a 1099-misc from them for the wages earned. I am not an independent contractor nor do I have a business. Not sure how to file this income as no taxes are deducted.

cdad
Feb 18, 2010, 05:48 PM
At the point of making a verbal contract as you were not an employee then you became an independent contractor. You service work was done on an as needed basis.

MukatA
Feb 19, 2010, 06:24 AM
1099-misc (nonemployee compensation) income: You will report your income and business/job 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). Self employed, independent contractor or sole proprietor 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)

With 1099-misc you will end up paying about 7.2% more taxes as compared to W-2 employee. The benefit is that if you have job related expenses, you can deduct it only as itemized deduction subject to 2% AGI limit.