How to file taxes as a contract worker with a 1099?
Asked by: epondel
My husband started a job in October 2012 as a contract worker for a non-profit organization. He is, apparently, supposed to file a 1099 tax form. It appears that this is considered ‘self-employed’ and he would need to make quarterly payments? This is new to us. There have been no taxes withheld in his paychecks and they are based on his work. He receives paycheck on the first and fifteenth of each month. I was assuming that we would file our regular taxes in the spring, but there may be a tax due on January 15th 2013, according to my research. I have a regular job with a W-2. I am wondering if anyone knows how and if he is obligated to pay the self-employment tax and whether we should still file a joint tax return? My taxes are fairly straightforward, as we do not own a house and have no deductions. We filed a joint tax return last year, while we were both W-2 employees.
Should we file our taxes as usual? Should he pay quarterly and we also file our taxes jointly (as a married couple)? Should I just pay taxes as an individual, instead of jointly filing? What are the taxes that he (contract work) would need to pay? Should we just consult a CPA on all of this? Any advice on this would be very much appreciated.