topic How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment? in Get your taxes done using TurboTax

How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment?

ocu57nem — Wed, 16 Dec 2020 23:05:31 GMT

If I'm receiving unemployment benefits how do I let them know about 1099?

Re: How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment?

VolvoGirl — Wed, 16 Dec 2020 23:10:24 GMT

If you got a 1099Misc with the amount in box 7 or a 1099NEC yes that is self employment income. Don't know if you need to tell Unemployment.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15. The SE tax is in addition to your regular income tax on the net profit. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a. Turbo Tax automatically calculates the SE Tax and Adjustment.

Are you doing 2019 or 2020 return? If you have self employment income for 2020 you might need to send in an Estimated payment by Jan 15.

Re: How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment?

DoninGA — Wed, 16 Dec 2020 23:13:26 GMT

Unemployment compensation is reported on a federal tax return and it is taxable income.

If you receive a Form 1099-MISC or Form 1099-NEC then you are not an employee but are self-employed. You must report all income you receive on a tax return.

Self-employment income and expenses are reported on a Schedule C which is part of and included with your personal tax return, Form 1040.

If you are using the TurboTax online editions you will need to upgrade to the Self-Employed edition to report your self-employment income and expenses.

Or if you are eligible you can wait ;until mid-January and use the TurboTax Free File Propgram.

IRS Free File Program - https://apps.irs.gov/app/freeFile/
If you are eligible you can use the IRS Free File Program delivered by TurboTax which is free to file both a federal and state tax return. The IRS Free File Program delivered by TurboTax edition is a full featured personal tax program and on a separate website from the TurboTax online editions.

To qualify for free 2020 federal and state tax returns with the IRS Free File Program delivered by TurboTax, you'll need to meet at least one of these requirements:

A maximum 2020 adjusted gross income (AGI) of $39,000; or
You qualify for the Earned Income Tax Credit (EITC); or
You served as active duty military (including Reservists and National Guard) with a maximum 2020 AGI of $72,000 (you'll also need a military-issued W-2).

See this TurboTax support FAQ on the Free File Program - https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/00/25887

See this TurboTax support FAQ for the difference between the Free File Progam and the Free edition - https://ttlc.intuit.com/community/choosing-a-product/help/what-s-the-difference-between-free-file-program-and-free-edition/00/26377
And see this TurboTax support FAQ on how to switch to the TurboTax Free File Program - https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/26264

Re: How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment?

xmasbaby0 — Wed, 16 Dec 2020 23:18:21 GMT

There are quite a few kinds of 1099's. Do you mean a 1099 that you will get for working as an independent contractor? Or something else--like a 1099R, 1099DIV, 1099INT. etc.?

If you worked as an independent contractor--which I am assuming is why you are mentioning a 1099---then you pay self-employment tax for Social Security and Medicare and depending on how much you made, ordinary income tax. None of that is withheld from your paychecks when you are an independent contractor, so you pay it all yourself. If you are receiving unemployment compensation while working as an independent contractor it is your responsibility to learn and understand your state's rules about that. When you certify for unemployment benefits you must be asked if you worked or earned income.....

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

And you did not ask but might find this helpful:

Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment

You might need to get your 1099G from the state’s unemployment site.

STATES THAT TAX UNEMPLOYMENT BENEFITS

AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI

Unemployment compensation is taxable on your federal return. Enter your 1099G for unemployment in Federal>Wages and Income>Unemployment. You might need to get your 1099G from the state’s unemployment site.

STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return

AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, W

Re: How much taxes do I have to pay on 1099's. Is this considered self employed? If I am receiving unemployment benefits do I need to let them know about self employment?

Critter-3 — Thu, 17 Dec 2020 00:04:22 GMT

If you are collecting unemployment benefits and working at the same time that is usually a no no so contact the state unemployment office for further instructions on what is required.