W9 Or 1099
Question: Do I have to pay taxes on a second job, if the second job doesn’t pay very much?
I have a full-time W2 job, for which federal and state taxes are obviously deducted automatically.
However, I have a new contract on the side, for which I filled out a W9 form.
My questions are this:
1- If I filled out a W-9, does that automatically mean that I get a 1099 form from the IRS next year?
2- Is there a “floor” for how much I must earn before I report this extra income? In other words, is it possible to earn so little that you don’t have to report it? Or will the IRS know about it already?
3- If there is a floor, does this job’s income get added with my first job’s income, so that I’d already be above the minimum earning anyway?
I’m just a little confused. This extra contract isn’t paying me big bucks. I’d be surprised to break $2,000 before I’m all done with it. I’m pretty sure I’ll have to give 30% or so to the government, but I thought I’d ask the experts first. It doesn’t hurt to ask, right?
Thanks much for any advice!!
Answer: Of course you have to pay taxes. When you file your tax return you are filing your TOTAL ANNUAL INCOME not just each separate W-2, 1099, etc. You are required to declare all income, losses, etc for the year regardless of the source for each. Remember that tax filings are information about YOU and not information about your various jobs.
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Tags: 1099, business, freelance, income losses, purchasing card, second job, Tax, tax filings, taxes, w9 form
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