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Originally Posted by Emcee-squared I made less than $600 as an Independent Contractor with Company X in 2014.
Therefore I do not HAVE to file a 1099-MISC, and my employer did not send me one.
However, I have to hit $11,670 total income for this year in order to keep my health insurance [my state hasn't expanded medicare].
What's the problem with reporting this income?
I'm also going to overreport tips from my restaurant job. Currently $4900 short of hitting my mark.
Comments? |
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I made less than $600 as an Independent Contractor with Company X in 2014.
Therefore I do not HAVE to file a 1099-MISC, and my employer did not send me one.====>.Correct; the current rules are payments to any one contractor of $600 or more during the tax year in the course of your trade or business you have to issue them a 1099-Misc.
• However, I have to hit $11,670 total income for this year in order to keep my health insurance [my state hasn't expanded medicare].
What's the problem with reporting this income? ====>> I guess you still need to report all of your income from your self employed businesses. That’s a concern for you who are self-employed, and it makes navigating the new system particularly difficult for you. So, for current / future self-employed worker, Obamacare is likely a great deal– you’ll finally be able to find decent insurance without a traditional employer and often get help paying for it. But first, you need to get through the Obamacare application process. To shop for plans, you need to estimate your annual income( it can vary wildly from month-to-month, year-to-year, depending on their luck landing assignments, contracts, sales, etc:, and getting that right is important: if you overestimate, your subsidy might be too small, but if you underestimate, you might owe the IRS money when tax time comes around. Or even worse, as you live in a state that doesn’t expand Medicaid and your underestimation puts your income below the poverty line, you won’t be eligible for any help paying for insurance.however, Even though navigating Obamacare can be a huge pain for you, the potential benefits are too good to pass up.
I'm also going to overreport tips from my restaurant job.=====> The easiest way to recover your excess payment is through your annual tax filing process. fica taxes were not withheld from the allocated tips.
Currently $4900 short of hitting my mark.Comments?
=======>> You must collect income tax, EE fica taxes on tips reported by employees. You can collect these taxes from an employee's wages or from other funds he or she makes available.You need to assign to your employees in addition to the tips your EEs reported to you for the year; If you allocated tips to your EEs, they are shown separately in box 8 of your EEs’ Form W-2. They are not included in box 1 with your EEs’ wages and reported tips. Because fica taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return.