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.
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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.
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.
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
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.
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