[vharper99]

I received a 1099 Misc from my previous employer. I'm wondering if it is correct. Here's some more specific information regarding it:

I was fired from my employer, however, as part of my severance package, they agreed to pay my health & dental insurance for 9 months.

I then received a 1099 MISC from them. They completed line 7, Nonemployee compensation in the amount they reimbursed me for the insurance.

Any help on this would be greatly appreciated.

[AtlantaTaxExpert]

Yes, your company handled it correctly.

[MSLAKE1977]

If i rec'd a 1099 misc form for 5000.00 (nonemployee compensation) how much should i pay in taxes.

[MukatA]

1099-misc income: You are an independent contractor. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

[AtlantaTaxExpert]

If that $5,000 is your ONLY income for 2009, you will owe ZERO income taxes because your personal exemption ($3,650) and your standard deduction ($5,700) exceeds the amount on the Form 1099-MISC.

However, you probably will owe self-employment taxes, which are calculated as part of the Form 1040 tax calculations on Schedule SE.