My wife is a full-year resident of CO but worked as a Locum Tenens Dr. in Wisconsin for 2 months (1099-misc) Why is it showing an underpayment penalty?

659

1 Best answer

New Member

Jun 6, 2019 10:56:09 AM

Receiving a 1099-MISC for those months means that your wife was considered to be self-employed.

Key Points on 1099-MISC and Other Self-Employment Income

When you’re paid this way, there’s no withholding taken out of your income, which means you’ll pay both self-employment tax as well as income tax.
A benefit of being self-employed is that it enables you to have lots of write-offs as well, so make sure to enter all your expenses. This helps you reduce the taxes you might owe or increase your refund. We’ll help you get every possible tax break you deserve.

See details of underpayment penalty below:

New Member

Jun 6, 2019 10:56:09 AM

Receiving a 1099-MISC for those months means that your wife was considered to be self-employed.

Key Points on 1099-MISC and Other Self-Employment Income

When you’re paid this way, there’s no withholding taken out of your income, which means you’ll pay both self-employment tax as well as income tax.
A benefit of being self-employed is that it enables you to have lots of write-offs as well, so make sure to enter all your expenses. This helps you reduce the taxes you might owe or increase your refund. We’ll help you get every possible tax break you deserve.

See details of underpayment penalty below: