[shafer21]

I made $7000 this year and sent a 1099 for it. Will I have to pay taxes on that, I have not saved a dime and am still broke. I heard that I had to at least make a certain amount before I had to pay in. I live in Iowa

[DearAddaline]

I was under the impression that you would Receive a 1099 from whomever paid you the $7000, thereby aleviated HIS own taxable income. The 1099 just proves to the IRS that you were paid that amount by someone and it will be taxable.

[AtlantaTaxExpert]

Agreed; it WILL be taxable.

You probaboy will qualify for nthe Earned Income Credit, which will offset what you owe in self-employment tax.

You will owe NO income tax.

[MukatA]

You received 1099 for income means that it is self employment/independent contactor income.
You must file return if your self-employment income is $400 or more. It is reported on schedule C. Your self-employed income is subject to employment tax at 15.3%. For this, with your Form 1040, you attach Form 1040 Schedule SE.

[AtlantaTaxExpert]

Noted.

[Fr_Chuck]

When you get a 1099 that means you were self employed and did work for a company. As such, all of your business expenses are deductable as well as other deductions. But you will have to include this in your other earnings.

When you are self employed it is your responsibity to set back a percentage of your earnings for the taxes. ( they don't hold them back, you are support to save them back yourself.

As noted since this is a small amouont if you did not have other earnings, you may be OK,

[AtlantaTaxExpert]

Agreed. I would be surprised if your tax withholding from your other jobs did not already cover the SE tax owed.