What can you tell me about 1099 status?

Answer by  Att4372 (1704)

A contract or freelance worker receives a 1099 instead of a W2. A contract worker is considered independent - furnishes his own tools, controls his own schedule, and requires limited or no supervision. No withholding, but you must make quarterly payments to IRS for income tax and FICA.

Answer by  Kurt (4579)

The IRS requires entities to issue 1099 forms to individuals or companies that earn more than $ 600 per calendar year. A copy is sent to the taxpayer and the IRS. The taxpayer needs to report that amount as taxable income on their tax return. If less than $ 600 is earned, there is no requirement for reporting.

Answer by  flamiss22 (5081)

An example would be if you have a large balance on your credit card and you ask for a settlement for less than the balance due. When the company gives you the settlement they are required by IRS law to provide you with a 1099C form at the end of the fiscal year if the unpaid amount is over $600.

Answer by  Caenaise (165)

This describes an independent contractor who pays all his own taxes including the employer's share of social security tax at 7. 65%. So, you would pay your 7. 65% plus the employer's 7. 65% for a total of 15. 30%, in addition to income taxes (state and federal) which must be paid quarterly.