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    Caineslayer's Avatar
    Caineslayer Posts: 3, Reputation: 1
    New Member
     
    #1

    Apr 12, 2011, 07:38 AM
    1099 contractor tax question
    Hi there,

    I started working as an independent contractor last November and never thought
    Of the fact that being a 1099 contractor would mean different tax obligations.
    I received one paycheck for this totaling 1980 in December and was sent a 1099-Misc
    For this.
    I didn't know about estimated payments will just a while ago and now I guess I'll be
    Hit with a double penalty for not filing and not paying my state and federal taxes.
    I'm just very confused how to compute the 1099 income along with some money I earned
    Earlier in the year as an employee working for my college. Furthermore, what forms
    Would I have to file for the 1099 for last year, and the estimated payments quarterly
    For this year?
    Caineslayer's Avatar
    Caineslayer Posts: 3, Reputation: 1
    New Member
     
    #2

    Apr 12, 2011, 07:48 AM
    I just wanted to add some more details to clarify my situation:
    - I was a full time student from August 2005 to June 2010
    - My actual visa for entering the country expired, but I am on OPT status
    Until August of this year.

    So some further questions would be:
    - am I still exempt from FICA or self employment taxes as I am under an F-1 status?
    - I was going to file just a 1040, but should I be filing a 1040 NR instead?(I have
    Been present in the US for all of the last year)

    I just want to say thanks in advance for any help I get here.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #3

    May 19, 2011, 06:57 PM
    Because you arrived in 2005, your exempt status expired on 31 December 2009, so, for 2010, you are a resident alien for tax purposes.

    You should file Form 1040 with Schedules C and SE.
    Indian CPA's Avatar
    Indian CPA Posts: 22, Reputation: 7
    New Member
     
    #4

    May 20, 2011, 07:08 AM

    The amount received seems low. You do not have to be concerned about estimated tax payment.

    Indian CPA
    Home - Indian CPA
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #5

    May 20, 2011, 02:07 PM
    I agree with Indian CPA that for 2010, NO estimated payments are required due to the low amount of income received.

    However, if the 2011 income exceeds $5,000, then quarterly estimated payments will be needed.
    Caineslayer's Avatar
    Caineslayer Posts: 3, Reputation: 1
    New Member
     
    #6

    May 23, 2011, 11:19 AM
    Hello Atlanta Tax Expert and Indian CPA,

    Thanks for the answers. I did not have to pay for last year, but This year my total income
    From being a contractor totals to approximately 19160 and I've already overpaid on my first
    Quarter, so I should be set. I just got to being a W-2 employee and will have my taxes
    Withheld from now on.


    Again thanks for helping me out with this question.

    - Eric D'Mello

    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #7

    May 23, 2011, 02:44 PM
    Glad to help!

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