Yes, you will need to include this in your income and will need to pay taxes on it. Also, if it is from work as an independent contractor you will need to pay Self-Employment Taxes on this income (you may need to upgrade to TurboTax Self-Employed). TurboTax will figure this out for you as you answer the questions when you enter the 1099.
W-2 income does not cancel out 1099-Misc Income. They are added together to arrive at your Adjusted Gross Income.
Do you know what percentage will be taken out for a 1099 form in Washington State? I understand I won't have an employer paying a portion but the calculation deducted seems pretty high than what I've paid as a private contractor in the past.
But if he earn approx. 12k he still needs to pay taxes on self employment income.
Approx 7500 of the income was with W2's and he get the $565 paid in federal taxes back.
Then he has $3700 of income from the 1099MISC and owes $531 back so refund is now $34.
He still have to pay the $531 even though income (w/interest on bond) total $12,102??