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josuebraden
Returning Member

I was a 1099 Independent Contractor, but didn't pay quarterly. How do I pay now?

I had a job from last July through the end of the tax year, but didn't pay quarterly. 

I received around 1,600 from that job in those months.

 

-I will be submitting my taxes via mail because of an ITIN application, how do I pay what I owe?

-How much of the 1,600 ought I pay? I've heard 20%

 

Thanks!

4 Replies
VolvoGirl
Level 15

I was a 1099 Independent Contractor, but didn't pay quarterly. How do I pay now?

Now that 2019 is over you pay the final self employment tax as part of the tax due on your 1040 return.  You don't need to make a separate quarterly payment for it.  Those are not required and are optional to pay.

 

Do you need to make an estimated payments  for this 2020 year?   

VolvoGirl
Level 15

I was a 1099 Independent Contractor, but didn't pay quarterly. How do I pay now?

To report your independent contractor/self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

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 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.

 

Here is some IRS reading material……

 

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

 

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

 

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

josuebraden
Returning Member

I was a 1099 Independent Contractor, but didn't pay quarterly. How do I pay now?

Nice! Thank you!

So I've already got the 1040 ready to send in.

The computer gave me an amount owed, so I guess it already had that calculated. I just wanted to double check.

 

So do I just pop a check in there with the paper-filing or what?

VolvoGirl
Level 15

I was a 1099 Independent Contractor, but didn't pay quarterly. How do I pay now?

Yes include a check or You can pay the IRS directly at

https://www.irs.gov/payments

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