I received a 1099 Misc from my previous employer. I'm wondering if it is correct. Here's some more specific information regarding it:

I was fired from my employer, however, as part of my severance package, they agreed to pay my health & dental insurance for 9 months.

I then received a 1099 MISC from them. They completed line 7, Nonemployee compensation in the amount they reimbursed me for the insurance.

Any help on this would be greatly appreciated.

Yes, your company handled it correctly.

If i rec'd a 1099 misc form for 5000.00 (nonemployee compensation) how much should i pay in taxes.

1099-misc income: You are an independent contractor. 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). 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)

If that $5,000 is your ONLY income for 2009, you will owe ZERO income taxes because your personal exemption ($3,650) and your standard deduction ($5,700) exceeds the amount on the Form 1099-MISC.

However, you probably will owe self-employment taxes, which are calculated as part of the Form 1040 tax calculations on Schedule SE.