I am working independently for a company, using my social security number. Temp work only. I was told that I will receive a 1099 form for filing at the end of the year. Can I wait until I have received my 1099 to file my taxes? Will there be a problem?

I don't quite understand your question. You file your income tax returns in the same time frame as everyone else - April 15th of the following year.

You file a copy of the 1099 with the taxes to prove the amount of that income.

Is that your question?

As a 1099 empoloyee there will be no tax automatically withheld from your pay. Consequently you should plan on filing estimated tax payments each quarter, so as to avoid being penalized when you file your taxes next April for having underpaid throughout the course of the year.

What ebaines says is true.

However, in the FIRST year of working under Form 1099, you CAN wait until you file your annual tax return to settle up on your taxes without penalty unde one of the "safe-harbor" rules.

I do NOT recommend this, though, because you may find it difficult to come up several THOUSANDs of dollars to pay your 15 April 2011 tax bill. Making quarterly estimated tax payments more or less enforces a certain amount of tax-paying discipline to keep you from being "caught short" from tax day in the following year.

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Originally Posted by ebaines

As a 1099 empoloyee there will be no tax automatically withheld from your pay. Consequently you should plan on filing estimated tax payments each quarter, so as to avoid being penalized when you file your taxes next April for having underpaid throughout the course of the year.

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I thought the first year was a free ride - it was for me because I had no idea what I would owe in taxes. After that I simply divided my tax liability into four quarters and sent it in.

I'm not sure the OP is asking about estimated taxes or income taxes or something else or that OP understands how 1099's work.

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Originally Posted by JudyKayTee

I thought the first year was a free ride - it was for me because I had no idea what I would owe in taxes. After that I simply divided my tax liability into four quarters and sent it in.

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I wouldn't say it's a "free ride" - you do owe taxes, it's just that you aren't penalized for underpayment as long as you pay either 90% of taxes due or at least as much as last year's total tax bill. Thus if you owed no tax in 2009, you aren't penalized for under-payment of estimated tax in 2010. Then in 2011 and beyond you do as you suggest - pay an amount equal to 1/4 of last years' tax bill each quarter and you're safe. However, the OP didn't say he paid no taxes in 2009, so I didn't assume as much.

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Originally Posted by JudyKayTee

I'm not sure the OP is asking about estimated taxes or income taxes or something else or that OP understands how 1099's work.

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Agreed. Since he asked about filing something prior to next year, estimated taxes seems like the right response. We'll have to see if he responds.

You're right - by "free ride" I mean I wasn't penalized. I did owe but for whatever reason didn't have to pay interest or penalty as long as I made quarterly installment payments the next year.

And maybe it's changed now.

Perhaps that first year you owed less than $1000 in underpaid taxes? In that case there would have been no penalty. If you start as a 1099 employee late in the calendar year then you may be able to slide by without filing estimated taxes, even if you had a tax liability the previous year.

But they need to remember they will owe taxes on this money and that the employer is not paying a percentage of the social security taxes either