Accounting, Payroll & Pension Issues/1099 misc. taxes

Advertisement

Expert: - 2/8/2011


Question
QUESTION: I will need to file a 1099 misc. total income was 2000.00. How much taxes would I need to pay on this amount?

ANSWER: Hi Pauline-

The amount of tax on that 2,000 depends on far too many variables for me to be able to give you a good estimate.  The best and easiest thing to do would be to fill out a 1040 with all of your information except that 2,000, and then add the 2,000 and see what the difference in tax is.

Best of luck to you-
Vanessa

---------- FOLLOW-UP ----------

QUESTION: As I stated my TOTAL income is 2000.00, this is the total amout I need to know what the tax would be on.

Answer
It's not just about your income.  Your tax situation includes deductions, refundable credits, non-refundable credits, non-taxable income, other taxes paid, and so on and so forth.  It's just not possible to give you an estimate based on one piece of information.  Everyone's tax situation is unique and complicated.  That's why I suggested filling out a 1040 (or even 1040EZ if you don't have any complicated income or deductions) and seeing what tax is owed.  Don't forget that you'll owe self-employment tax on it, so you'll need to fill out a schedule SE.

All the best-
Vanessa

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts

Volunteer

Vanessa D. Powell, CPA

Expertise

I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.

Experience

I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.

Organizations
California Society of CPAs, American Institute of Certified Public Accountants

Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.

Awards and Honors
Graduated summa cum laude (with highest honor).

Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.

©2012 About.com, a part of The New York Times Company. All rights reserved.