[pantherblue]

Hi,

I worked for a painter last summer while taking a break from college. I recently received a 1099-misc from him with a letter stating that I need to pay taxes on my income. Sec 409a deferral was $4878. So last night, I started to fill the 1040 with shed C and SE and realized that my AGI - standard deduction comes to a negative figure. So my taxable income is 0 but then I went to line 58 asking for myself employment tax which is pretty high($624) because I didn't really have any expenses. Is there anything I can do to lower my SE tax? I know the construction business usually hires only independent contractors but I would not classify myself as one. I worked under his supervision and used his equipment so should I file a complaint?

[MukatA]

On yourself employed income, you must pay SE tax at 15.3%.
But getting 1099-misc instead of W2, you pay at 7.5% more tax, but you can directly deduct expenses on schedule C or C-EZ. Read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.

You can file Form SS-8 with IRS. Form SS-8. Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Firms and workers file Form SS-8 to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.