<p>Hi. My daughter worked at 2 companies in 2011. The second one considered her a temporary employee (my word) for the first 3 months. They sent her a 1099-Misc for this time and did not with-hold taxes. They sent a W2 for the rest of the year’s salary. We are not sure how she reports this 1099 Misc. One paper said she has to file Schedule C and something else said self employment forms
Anyone know what to do??</p>
<p>Thanks</p>
<p>She was considered an independent contractor and would report on a schedule C, which is known as the self employment forms.</p>
<p>There will be two forms: C and SE in addition to the 1040. Not hard to complete, just follow the instructions. Be aware that this will generate self-employment tax. She may still owe a chunk of change to the Feds even though she’s due a refund of the income tax.</p>
<p>Thanks. Will she also need to do a schedule SE? That one talks about church income?</p>
<p>oops cross posted</p>
<p>Just follow the yes/no flowchart and you will get past the church income stuff pretty quick.</p>
<p>Happykid says I’ve got to live forever because she never wants to have to do her own taxes.</p>
<p>Did she have any expenses that she can deduct? Did she need a uniform, travel between locations (unreimbursed travel expenses that are not commuting)?</p>
<p>No expenses to deduct. She walks to work! I started to look at the froms last night but quit pretty quickly and went to bed.</p>
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<p>As long as I live, I will pay someone to do my taxes. I’d rather have some unpleasant medical procedure than have to do my own taxes.</p>
<p>I think it’s wrong that the tax code necessitates people with advanced degrees (like me) hire someone to perform their civic duty. Can’t we have tax simplification???</p>
<p>There were several attemps to simplify the tax filing process but only ended up made it more difficult. Politics and special interests to be blamed. Its part of the cost being democratic.</p>
<p>OP, in addition to income taxes, your D might have to pay SS if she received a 1099-misc and without expenses, so look out on that.</p>
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<p>Wear and tear on shoes?</p>
<p>I do my own. By the time I organize paperwork to hand over to a tax accountant, my hard work is done. Plugging a few numbers is no brainer.</p>
<p>Tax accountants are no good if they just take your number and plug it in such as HR Block, you can do it DIY. Tax accountants are useful if they help tax planning BEFORE you make some major financial decisions, make you avoid tax traps and try to audit your numbers to reduce your taxes after you hand them the numbers.</p>
<p>I do my taxes because my situation is like Igloo’s. By the time I sort out all the messes (and this year Happykid had some really ugly messes of her own), all I have to do is plug the numbers in.</p>
<p>I’ve used Turbotax a couple of times, and I’ve heard good things about TaxAct, but my personal favorite is the IRS’s own “free fillable forms”. Just like the paper ones, but you can complete them online and they do the calculations for you so there are no random addition/subtraction errors. There are a couple of places there you have to copy numbers from one form to another, or you have to do some paper and pencil work for one of the worksheets that are in the instruction materials (e.g. qualified dividends), but this was pretty pain-free. And there is no income limit for free on-line filing. Woo-hoo!</p>
<p>Paying young people with a 1099 MISC is one of the biggest loads of BS I have seen. The employer is just weaseling out of paying social security (and other?) taxes for the employee, who is not running his own business and in no way meets the test of being an independent contractor. Last year I forced my son’s 1099-MISC payment into “other income” and told him to let me know if he hears from the IRS. Nothing yet, but I guess they still have a few more years.</p>
<p>Happykid does stagehand work at multiple venues. Some jobs are payrolled through the venue, some are 1099-misc by the performing group or a tech director’s own small business. The recordkeeping is a challenge!</p>
<p>I thought about advising her to put it in ‘other income’. She’s upset by the additional tax owed. I told her last night that there will probably also be SS owed. She was not happy. I agree with the poster’s comment above re: employers copping out with a 1099-Misc. We’ll file the schedule c and ES but my brother’s taxes are much easier and he owns a home and I itemize his return.</p>
<p>You can probably use Schedule C-EZ instead of C. You will still need Schedule SE.</p>
<p>I must be doing something wrong. Please tell me this is wrong!! I filled in the schedule c and put the amount on line 12 of the 1040. Makes sense this is income. Then I figured the SE tax which goes on line 56 (with a small credit from gross income). But this means she is taxed TWICE --the gross isncome is higher by the amount on the 1099 Misc AND the additional SE tax!</p>
<p>Please tell me this is wrong.</p>
<p>I guess I am not doing it wrong. The extra tax from the SE is social security and then regular tax on the gross. Wow she owes 1700!!</p>