If you are an employee and your earnings are reported on a W-2, you file single, and you have no other income, then all of your earnings are exempt from federal income tax. Your first $10,300 is tax-free due to your standard deduction and personal exemption. If you had income taxes withheld then you should file a return in order to obtain a refund.
If your earnings are from self-employment then you will have to file a return and pay some self-employment social security taxes.
Enrolled Agent
EA, QPA, CHFC, CEBS, CLU - 30 years experience providing financial advice
Your social security is not taxable because the sum of your income (total taxable income plus 50% of your SS) for determining the taxability of SS does not exceed the base amount of $25,000.
The company that gave you a 1099-MISC is treating you as an independent contractor rather than as an employee so you will have to report the income as self-employment income on Schedule C. In addition, you will have to file a Schedule SE to report your self-employment social security taxes. If you have no expenses to claim then your self-employment social security taxes would be approximately $1,444.
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
http://www.irs.gov/pub/irs-pdf/p1779.pdf
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
http://www.irs.gov/pub/irs-pdf/f1040sse.pdf
Then the office mngr. lied to me. I filled out another form and i told her i am Not an ind. contractor ,(Is a contract involved as there is no contract between us.) she said right. So i crossed out 1 side of a 2 part question and listed as Individual.I'm going to talk to her and the owner Monday but anyway It's partly my fault also for trusting them. Thank you. (Will the irs take payments?) final question.
Whether you are an employee or independent contractor depends on the amount of control the company has over the work you perform. If they have the right to control the means and methods of the result of your work then you are an employee. If they only control the result of your work, then you are an independent contractor.
If you cannot pay all of the taxes then you can establish installment payments with the IRS.
http://www.irs.gov/businesses/small/article/0,,id=108347,00.html
http://www.irs.gov/individuals/article/0,,id=149373,00.html
Thank you. I'm a Friend of the family so can she change the status before tax time, to part time employee? (i know I said last question but this thought came to me so please answer and put it on account9
.i'm sick about this but live and learn ). Also i read that Less than 400 a mo. is not taxable? which would be 4800. next yr.) anyway charge me what I owe you.
I do not ask something and do not xpect to pay.
Thank You for your time.
I wish you well.
nick
It's possible that she could reclassify you as an employee. Depending on the size of her business, and previous forms filed (for example a 941 or 944) certain procedures would have to be followed and she would also have to pay employer FICA taxes for you. Depending on your state of residence, state taxes may also have to be reconciled. She would have to discuss these issues with her accountant.
If you were reclassified as an employee, then all of your wages would be tax-free since your total taxable income would be less than $10,300 due to your standard deduction and personal exemption. You could elect not to have any federal income taxes withheld on Form W-4 if you had a right to a refund of all federal income taxes withheld in 2007 because you had no tax liability and you expect to have no tax liability for 2008.
http://www.irs.gov/pub/irs-pdf/i941x.pdf
http://www.irs.gov/pub/irs-pdf/p1976.pdf