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ready1 · Oct 5, 2009, 01:51 PM

Hello all. I am retired now and was always paid with a W2. A part time job may be in my future although it is to be paid with a 1099 form. I hope to make about $5,000 this year from this employment on top of a pension. I did not make enough from my retirement pension to pay taxes last year (I had them done by a paid service).

My questions are:
What is the minimum for a married couple filing jointly to have to begin to pay taxes?
What are the all the deductions (state, federal, Soc Sec, Medicare etc... ) and amounts and where do I send them quarterly?
Do I have to pay a self employment tax or workers comp tax or any that I may be unaware of?

As you can see, I am not knowledgeable in this area and it is stressful to make a mistake with the IRS.

Thanks to all who may help!

AtlantaTaxExpert · Oct 5, 2009, 02:29 PM

Ready1:

The filing requirements for someone being paid under a Form 1099-MISC is different than those for someone being paid under a W-2.

The reason is the self-employment tax, which is assessed at 15.3% of the net income (gross income minus allowable deductions) from the Schedule C that exceeds $400.

The amount of income that is subject to federal income taxes is that amount that exceeds about $18,300.

For your 2009 return, I recommend that you use a competent tax professional to prepare your return, because you will need to file Form 1040 with Schedules C and SE (to properly report your Form 1099-MISC income plus claim all the allowable deductions on the Schedule C) plus whatever pension income your received, to include Social Security benefits.

The taxes that the tax pro will SAVE you will probably more than pay his fee for preparing the return.

ready1 · Oct 6, 2009, 01:42 AM

Thanks for the reply. Should I be concerned with making quarterly payments to federal, state, social security etc and if so, where do I send payments? Thanks.

Five Rings · Oct 6, 2009, 06:46 AM

To answer your immediate question link to this and read the directions:
http://www.irs.gov/pub/irs-pdf/f1040es.pdf

AtlantaTaxExpert gives you priceless advice;
Find a good tax professional and do some PLANNING in regard to your new business. Our tax laws provide substantial support to the self employed.

No one can know everything about everything. I am sure you are expert in your field and that is why you have been engaged by others for a fee. Why try and learn tax law too; would you consider putting a new roof on your house by yourself? Let a tax pro help you; it's deductible.