taxes? 1099??

[Ozwynn]

you should see mine........

I have to do mine every month just to be able to keep track.

 

[alabamafrog]

I am sure if you owned a business or received other income that from one employer your taxes would be more difficult

Yep, I own a small construction company and I specialize in small government contracts. My paperwork is a nightmare. I spend more time at the desk then I do actually doing the work. I have to do payroll taxes, state and federal taxes, monthly, quarterly, and yearly. Not to even mention all of the other paperwork and red tape associated with the actual government contracts.
I have a pile of 1099's!

 

[JohnnyO]

There are different 1099's, the most common is an interest statement, the other is one you get for any self-employment income that the person paying you can write off as an expense and reports what they paid you to the IRS.

For example, let's say I'm a building contractor. I hire Joe Blow's Excavating Service to dig a foundation. I pay Joe Blow $3000. When I do my taxes at the end of the year, I claim the $3000 as a business expense, send the IRS a copy of that 1099 and all the other 1099's I sent out, plus a copy to Joe Blow. Now the IRS knows that Joe Blow got $3000 and that $3000 had better show up on his tax return. Further, when I send someone a 1099 that acknowledges that I did not withhold Federal and Social Security taxes from them and they have to pay that themselves. Which is actually your Federal wage tax and double Social Security, or 15.3%, because when you work for someone else you are only paying half of your SS (7.65%) and your employer pays the other half. When you work for yourself you pay both ends of SS, or 15.3%. Plus your wage tax.