Hey guys,

I worked at a firm as an intern thought my school year. My company would cut me a consultants check every week to give me some money. They just handed me a 1099-misc with box 7 reading $10,125. Now living in NY, am I really going to have to pay about 3 grand in taxes out of my own pocket? Is there anything I could do to minimize the damage?

Mainly you have to pay self employment tax of 13.3%. You can deduct actual expenses incurred for this income. You can not deduct commuting miles.
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 13.3%; 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)