A few questions about the 1099 tax form I recieved from my employer...?

A few questions about the 1099 tax form I recieved from my employer...?
I am a full time college student with a part time job working for one of my professors. I received a 1099-MISC from him, but I'm not sure what to do next. I usually get W-2's from my employers, so I have never dealt with this form before. I made $2,510 (that is the number in box #7 - nonemployee compensation), so am I still going to have to pay taxes on that or is there a minimum requirement that you have to meet? If so, how do I find out what the minimum requirement is and if I did meet it, how do I calculate how much I am going to have to pay? What forms do I fill out to file this? Any help would be greatly appreciated. Thanks so much!


Answers:

Judy:  There's a minimum requirement for having to file 1099 income, but it's $400 so yes you have to file. If that's your only income you shouldn't owe any income tax, but will owe around $355 self-employment tax for social security and medicare.
2008-01-27 09:19:59
Chosen Answer
r_kav:  File a 1040 with Schedules C-EZ and SE.
2008-01-27 09:55:33
kathykoul:  the 2510 you made is considered self employment income because you are not an employee of the professors or the college. you are essentially freelancing. this means it's subject to self-employment tax. You won't end up having any income tax due however you have to pay self-employment tax on income over 400. This will represent your social security and medicare payments that employers take out of your check normally. You can file a schedule c-ez in stead of the long schedule c with your 1040. a tax program may help. turbo tax asks if you have any income reported on a 1099 and then guides you through how to report. you can go online to file for free with turbo tax because your income qualified you for free efiling. remember if you are under 24 and a full time student your parents can still claim you as a dependent so when it asks if someone can claim you - answer yes.
2008-01-27 11:19:45