REVISED questions about 1099 and refund?

REVISED questions about 1099 and refund?
He works for cash, pd weekly. Will receive a 1099 for aprox. 16000. I did not work. We are not married (15 yrs together), but have three children together. He fully supports us all with this income. (It's been a rough year, to say the least). There are no work related expenses we can claim. Is there ANY hope for a refund at all? Will it be possible that the tax credits for the kids will balance out what he will owe in unpaid taxes? Where is the best place to go to have this prepared? I have had negative experiences with our local H&R Block in the past. Thanks! He is a flooring installer, but all vehicles used are his bosses...I don't know what other expenses he could claim. Gas and all vehicle costs are paid for by his boss. They simply drive to the job site and lay the carpet/hardwood. They are then paid cash at the end of the week. They are paid a set rate daily, not hourly or by the job. I understand how the IRS would not believe a family of five lives off this amount of money, but we do. It is a very simple life, to say the least... How does an audit work? Everything he makes goes to pay living expenses (rent, electricity, water)


Answers:

Chosen Answer
Cathi K:  The child credits will definitely outweigh the taxes he owes. What kind of work does he do that has no expenses? That is a hugh red flag to the IRS. You can be expecting an audit.
2010-12-28 14:23:05
the tax lady:  There won't be any income tax. $400 making work pay credit. If 2 or more children under 17, $1950 for additional child tax credit. If 1 or more children under 19, some money for EIC. LESS $2261 for SE tax. For EIC purposes, his income was $16000 - 1130 or $14,870. This assumes he doesn't rat out his boss for claiming he's a contractor when he's actually an employee.
2010-12-29 05:59:52