Have a Tax Question? Ask a Tax Expert
If you work as independent contractor you are considered self employed.
You have to report and file if have net earnings of $400 or more. You are required to pay self-employment tax by filing Schedule SE (PDF), to your FOrm 1040
If your income is $700 than you can claim expenses that you may have incurred in carrying on this activity. If as a result your net income is under $400 than there is no self employment tax due but you are required to file a tax return.
So why my employer said that since I didnt acheve the 700 I wouldnt need to receive the 1099 form from them? cause thats what they told me and i never got it..
what should I do cause I want to have my taxes done..
Normally, if the payment is $600 or more in a year than they are required to issue you a Form 1099.
I do not think the employer gave you the correct info.
You can prepare your taxes even without the Form 1099. You need to report the income that you received.
Im filing for immigration for permanent residency (thru marriege) and I'm concerned cause I didnt do taxes and I used my SS that I got with the j-1 visa but my visa expired 2 years ago.. do u think if I file paperwork before doing tax that can be an issue?
what is your knowladge on that field?
I already asked lawyers and the tell me that I'll be forgiven for the work but they told me to ask a tax expert regarding the tax it self
I do not think this should be an issue esp. since your employer has not issued a Form 1099 and so really the IRS has no info of the income you received.
Plus....$700 is not a very big amount.
You may want to file it once your paperwork is cleared and that should be fine....I suppose. Do check with your lawyer on this.
so whats the % I'll have to pay for the income? 30%? do I have any penalty?
can I do it online or u should I hire someone?
You may not have to pay anything if your net income after expenses is under $400. You should be able to do it online using the tax software or manually by downloading forms from www.irs.gov