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  • Feb 18, 2010, 05:37 PM
    taxesfordummies
    Question on 1099 misc
    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.
  • Feb 18, 2010, 05:48 PM
    cdad

    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.
  • Feb 19, 2010, 06:24 AM
    MukatA

    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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