Retirement tax questions

You are actually going to have to pay self-employment tax of 15.3% on your earnings for Social Security and Medicare. If you earn even $400 reported on a 1099Misc you owe self-employment tax, since there is not an employer withholding it from your pay.

If you are someone else's dependent and you are paid wages reported on a W-2 instead, then you do not pay tax on your wages under $6350 (for 2017); the employer would withhold your Social Security and Medicare from your checks.  If you earn over $6350 for 2017 reported on a W-2, then you could owe some tax.

When you file a 2017 return next year you will have to file as "self-employed"--you are not an employee.  The IRS considers you to be an independent contractor. 

If you qualify, there is another free software program available from TurboTax which will allow you to enter self-employment income reported on a 1099Misc.  Do not confuse this with the similarly named Free Edition.

Try the Freedom Edition: 

https://turbotax.intuit.com/taxfreedom 

You qualify if your income was $33,000 or less, or $64,000 or less if active duty military, or if you qualify for Earned Income Credit

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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