tax question

[surfn]

got my tax refunds back weeks ago......so this is a separate issue.

i was just sent a check from a company for some work I did for them. they paid me like i was a contractor, so no taxes were taken out. and instead they just had me fill out a W-9 to send back to them for their records.

so obviously i need to pay some taxes on this sum of money, like social security and the other normal paycheck taxes.

what do i need to do?

i thought i might be able to just wait until i file my income taxes at the end of next fiscal year....but i've heard a couple people say who work by contract exclusively that they file this stuff on a quarterly basis.

 

[Stixbaraca]

Not sure if this helps...

http://wiki.answers.com/Q/What_shou...a_1099-C_after_you_have_filed_your_tax_return

 

[surfn]

thanks man, but i just got this check last week, so it will actually be on this years income tax returns (to be filed next year). so this is independent of last years returns.


i'm surprised no one has answered, being in the reefing hobby theres ALLOT of contracted funds (non-taxed) being spread around...lol ;)

 

[ecotoxlady]

Surfn, I went through the same experience when I did contract work a couple years ago. It does not matter whether you pay the taxes on that money in one lump sum or quarterly as long as it is paid. The reason most people do it quarterly is because it is less painful on the bank account if the contract was for a large amount of money (like my husband who waited to pay his in one lump sum for a contract for $12000). I really hope this helps and can probably dig up more information if you need it. Thankfully my husband and I have not done contract work where we have had to deal with this in a while.

 

[surfn]

Surfn, I went through the same experience when I did contract work a couple years ago. It does not matter whether you pay the taxes on that money in one lump sum or quarterly as long as it is paid. The reason most people do it quarterly is because it is less painful on the bank account if the contract was for a large amount of money (like my husband who waited to pay his in one lump sum for a contract for $12000). I really hope this helps and can probably dig up more information if you need it. Thankfully my husband and I have not done contract work where we have had to deal with this in a while.

i should only have this happen 2 or 3 times a year, so i figure i'll just file right after i get it.

how do i go about filling? what forms? where do i find them? and where do i send them? lol

 

[turbois300]

Hey surf. Do you file with a TIN or under your social for this work? I should be able to help out.

 

[surfn]

Hey surf. Do you file with a TIN or under your social for this work? I should be able to help out.

well, they sent me a W-9 form with the check, that a filled out and sent back to them (them being the company who paid me)

 

[turbois300]

Well the company is going to file it as an expense (of sorts). You will need to file it as income as Uncle Sam will be looking for it. If your only getting 3 or 4 you may want to wait and do them all at one time (unless it is a considerable amount of money). I assume that you just file as an individual or do you have a business. That makes a difference too.

 

[turbois300]

If you have other income, you must fill out a 1040 Schedule "C" or "CZ", pay income tax and self employment tax. You are also subject to any State Sales Tax, if there is one in your state. 1099-MISC is payment to a contractor.

You have to file schedule C if it is over $400

 

[turbois300]

Line 21 on form 1040 should be where you list it.

 

[reef-lover]

surfn- if its recorded on a 1099misc., you have to pay quarterly, otherwise you'll have to pay a late fee. I was paying once a year for a few years, but got tired of paying the $600+ late filing fees.