Only Made $14,000 & Have to Pay $2200 On Taxes! WHY? HELP!?

2008-01-31 6:06 am
My husband and I are both 22. We are married/filing jointly on our taxes. I have serious medical problems and cannot work. He is our only source of income. We don't even have insurance! He made $14,500 and the IRS says we owe $2200 this year. I think this is crazy! He is employeed by a company but instead of a W-2 he recieved a 1099-MISC Miscellaneous Income. So I guess they are saying he is self- employeed/contractor and owns his own business...but he does NOT! He works for a company, has to go to meetings, has a set schedule and everything. What can we do? Can we dispute this somehow? And advice would be great.
更新1:

*my husband is a meeter reader for a gas company in Texas.

更新2:

I did the return and yes we are both claimed. He doesnt own anything with the company.(routes etc.) And he has a schedule and time frame to finish them or..fired...so see not self employment.

回答 (11)

2008-01-31 6:19 am
✔ 最佳答案
Well this is a mess for sure but I am still not clear on how you got $2200....did you have someone else do your taxes or did you do them yourself? If you did them yourself I would suggest having someone that does taxes professinally take a look at them for you. Were there any taxes taken out of his paychecks? Regardless of the W-2 or 1099 if there were taxes taken out then that counts for something. As for the 1099 this doesn't always mean self employed or business owner, it can mean contractor...is he paid by the hour, by the job or how? There are 21 points of criteria that MUST be met for a company to call any worker a contractor. Does he furnish his own tools, car and all other things to complete his work or does the company furnish them for him? If the company provides everything for him to complete his work then he is in no way a contractor, he would be an employee...unfortunately all you can do is call the IRS and tell them what the situation is and they will look into it but this still will not exempt you from paying taxes on his income if there were no taxes taken out....if they find that he should have received a W-2 instead it will make it so you do not pay the higher self employment tax and that will help you out tremendously. I hope this helps you some.
2008-01-31 6:37 am
With that income you aren't paying any income tax. The self-employment tax on that amount on a 1099 would be $2048 though - that's for medicare and social security.

If the employer controls where, when and how he does his work, then he is probably an employee misclassified as an independent contractor though. You can file a form SS-8 to ask the IRS for a determination of which he is. But even if he's an employee, he still owes 7.65% of his income, or $1109, for social security and medicare - since it wasn't withheld from his paychecks, he still owes it.

Good luck.
2016-07-31 2:18 am
Interested in this
2008-01-31 6:31 am
You should definitely pursue getting a W-2 instead of the 1009 misc. If your W-2 wages as an employee is $14,000, the amount of taxes you would owe should really be $373. $14,000 minus the $10,300 standard deduction for a married-filing-jointly return means $3,700 is your taxable income. Looking up the tax table for this amount means a tax of $373.
2008-01-31 6:27 am
when a w4 was filled out how many exemptions he put down, an employer goes by a chart that has a list of exemptions and he matches exemptions with the amount by law he should take out in taxes. I believe not enough taxes was taken from his check. Fill out a new w4 and list exemption for each person he is claiming
2008-01-31 6:21 am
is it the IRS saying this or just the way you filed your taxes?

The main difference when getting a 1099, is that the SE tax is double of what you would have paid if you were employed by a company. which is about 15% Normally this is split with the employer and the employee.

If this is just what you figured out on your own, you want to have a look to make sure you have included all your deductions. Make sure that the standard deduction is 10,700 for married filing jointly, rather than the 5350 for married filing seperately. Also there is another for adjusted gross income deduction of 3400 per person, which in this case(if no dependants will be 6800.

The only other thing to look at is that with being paid as a self employed person, the wages earned did not deduct any of the normal fed and state taxes. This would mean that your husband was paid the full 14,500. If this is the case, than it is very likely that you owe the money. Look at the last pay stub, and if it looks as if the taxes were taken out, then you would have a case, if not you can make arrangements with the government to pay the debt over time.

For the future if he continues this employ, you can choose to make payments during the same tax year to counter act the effects of the tax return.

Anyway, hope this helps good luck.
2008-01-31 6:14 am
There's nothing you can do because the employer didn't give him a W-2 so his taxes wasn't taken out. Since they gave him a 1099-MISC instead he can start itemizing his deductions so he won't be taxed as high. Did he had to buy supplies for work? Did he have to do alot of driving? Did he have to pay interest or insurance? There are ways to lower your taxable income.
2008-01-31 6:12 am
Call the IRS and have them investigate the company he works for.
He may be self employed if they don't set his hours and he owns a route.
If he is self employed he will owe self employment tax that is double his FICA and Medicare. Other than that he probably has enough deductions and exemptions to avoid income tax.
Didn't he notice is checks didn't have deductions for FICA and Medicare?
They should have explained his status when they negotiated his pay since he would demand more to be self employed.
2008-01-31 6:11 am
if he's not self employed, have him go back to his employer and get a W-2 ...

did you make sure he claimed you?
2008-01-31 6:11 am
they have him listed as temp agent file a claim with his company!

Go to a tax company and see if you can file your medical!!!


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