Free Tax Tips

Posts Tagged ‘independent-contractors’

Question: i am using turbotax online and i need to do an amendment for a 1099-misc…?

turbo tax’s help is of NO help. it has yet to ask me for my non employment compensation that is reported on this 1099-misc. does anybody know what to do?

Answer: The 1099 income does NOT go on your return as other income if it’s non-employee compensation. You’ll need to fill out a schedule C or C-EZ, a schedule SE, and a form 1040.

If you’ve already filed for the year omitting this income, and have to amend, you’ll have to file the amendment by mail – can’t efile an amendment.

Question: What state do I owe taxes from my 1099-R if I moved?

I recieved a 1099-R because I cashed out my pension early. I earned the money while I lived in Alabama – my 1099-R came from the Retirement Systems of Alabama. I did not get the money until I moved to Michigan. Which state is this money taxable in? Box 11 on the 1099-R reads AL. Do I have to pay taxes in both states?

Answer: If your 1099-R says AL, then it is AL.
There should be a spot on your MI form to remove the $ that you paid to another state.
If you do your taxes online, it should automatically adjust it for you.
You will only owe taxes in MI for the $ you made in MI, if you worked there in 2007.

Sacramento early birds get help filing taxes

In less than one hour Saturday, Donna McClish-Calimee completed something lingering on most to-do lists.

Question: If a small business did’nt report your income and you don’t file your taxes will they find out?

I work for a small Company fresh out of college, I made less than 20,000 this past year. I Live at home with my parents, i dont have many bills. I noticed we forgot to send in the official form A 1099 copy to the IRS reporting everyones income. There are only like 3 employees. I would like to know what would happen if i did’nt file my taxes. I could really use the extra money but i dont want to get in trouble.

Answer: You didn’t mention if the company you worked for withheld any taxes from your check. If they did you already have paid the taxes and may be due a refund. And if the company didn’t make regular deposits of those taxes withheld they would face fines and penalties, of which you would not be responsible.

However, you mention sending out 1099’s, which is used to let the IRS know that a company has paid an individual as an independent contractor rather that an employee. Companies usually do not withhold taxes from independent contractors and you would be responsible for the taxes.

If the owner of the company files a return for the company then he would be listing the amount paid as salaries. The IRS may take note of the expense item on the company return and wonder why there are no collaborating W-2’s to back it up. Which means that the company may get audited, and find out that you would owe the taxes.

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Send Take Five a letter and tell us why you or someone you know deserves a Valentine’s Day makeover! The winner will receive a new outfit and image consultation from Meribeth VerHulst, of Younkers, and hair and make-up services from Matt Flora, of Matt Flora Hair Studio!

What’s a Form 1099-G?

Question: Can 1099 employees recieve unemployment benefits in Texas if they were fired?

Thank You Steven F that makes complete sense to me and this was our first 1099 job. Thanks for the clarification. You get best answer when the question is closed.

Answer: There is no such thing as a 1099 employee. Either you are an employee, and should receive a W-2, or you are an independent contractor and should receive a 1099. Independent contractors are not fired. They simply don’t have their contract renewed.

Since they were never ‘employed’ under the law, they never became ‘unemployed’. therefore they are not eligible for unemployment benefits.

GERRY KRAMER: Money Smarts – IRS eyes independent contractors; small businesses beware

The IRS, along with some 40 states, is taking a closer look at independent contractors, individuals who work for a business but are not classified as employees. ICs are paid directly for their services without any taxes withheld. At the end of the tax year, they receive IRS 1099 forms detailing the amounts paid. Employers like ICs because they can save up to 30 percent on labor costs avoiding …

Small Business Tax Advice – Employee or Subcontractor

Question: I am starting a job as a salesman, and the employer sent me a non official 1099 form. Is this standard?

I just got a document set up on MS word, not a W2 type of form. I’ve never filled out a 1099 type of form, just making sure this is OK.

Answer: yeah a 1099 is for independent contractors. tis means you’re not an employee so remember you dont hae the rights of an employee. as an independent contractor no taxes will be taken out, you are responsible for them yourself. and yes the MS Word format is fine. Just print it out and faxor turn it in or type in your info and submit

AARP Tax-Aide to offer free tax preparation and electronic filing service

AARP Tax-Aide is again offering free income tax preparation including free electronic filing service beginning Feb. 1 through April 15. The organization provides complete tax preparation service, free of charge, to all qualified taxpayers, with…

Kara Dorky Moment #1099