AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/24/2008 Subject: Personal taxes
Question QUESTION: My Fiancee is getting a 1099 (making no more than 9000 for the year) he is claiming his self, our 6month old daugher, and his brother who lives with us..will he have to pay anything?
He is not claiming me because i received 4,000 from unemployment last year, so he can not claim me right?
When i claim myself for the 4000 will i have to pay anything?
ANSWER: He will not owe any income tax but he will owe self-employment tax on his 1099 income. He may have enough earned income credit and/or child tax credit to offset it though.
He may not claim you but you will not owe any tax.
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QUESTION: He is not self employeed he works for a subcontractor who only gives out 1099's at the end of the year and he only worked for him, at least i didn't think that that was being self employeed..i thought his boss would be self employeed.
Would it be likely for either of us to get something back.
Answer If you get a 1099 - you are considered by the IRS to be self-employed. His employer is just saving a few bucks on FICA tax and workers comp insurance.
He may get something back - you will not get anything back unless you had income other than the unemployment. For you to get anything back, you need to have had tax withheld from a paycheck or have earned income from which to get earned income credit.
