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: 1/14/2008 Subject: W2 to 1099
Question I have been switched from W2 to 1099. What do I do first? How do I get set up to make quarterly payments to the IRS? I am only a part time employee making $12.50/hour and I do not have the money to pay an accountant.
Answer You will file your return reporting your income on a Schedule C, which is an attachment to your Form 1040. You will report any business expenses you may have on it also. You will use a schedule SE to calculate self-employment tax. This is basically your social security and medicare on your earnings.
You make estimated tax payments using the Form 1040-ES voucher. You pay 1/4th of what you expect to owe for the year each quarter. The payments are due 04/15, 06/15, 09/15 and 01/15.
You will probably not owe much in the way of income tax but self-employment tax could be significant.
