A 1099 contractor is considered self-employed by the IRS. You will need to make payments for estimated taxes due, either with estimated payments or by your spouse adjusting W-2 withholding to cover any possible tax due.
To avoid penalties, you'll want to pay either 100% of the tax due the prior year, or 90% of the tax due in the current year. It is difficult to estimate when your have variable income, but you can do it quarter by quarter. For instance, you know what you've already made so far this year so you will want to be sure to estimate based on that amount of profit. You're responsible for FICA - Social Security and Medicare - along with income tax. Your income tax rate is based on your marginal bracket. FICA is around15%. Here is a great resource for determining what you owe.
Multiple 1099s for related work can all be reported together on the same Schedule C. TurboTax will guide you through it as you enter the information from the 1099s in the wages and income section under self-employment income.
Hope this helps!
Cindy
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