Ask MetaFilter questions tagged with irs

Will My Dept Sink Me With A Prospective Employer?

Anonymous — Tue, 24 Nov 2009 08:46:00 -0800

Will a prospective employer not hire me when they find out I'm repaying money to the IRS? I'm in the running for a job I very much want, and in the course of my research on the company discovered that they run routine credit and background checks on prospective employees.

I have minimal outstanding credit card debt and no collection agency reports on outstanding bills. My concern is this: although I've filed my taxes every year, due to a drop in my income, I didn't have enough money to pay what I owed for tax year 2008.

Since I'm currently a freelancer, it was a substantial amount ($4000). I worked out a payment plan with the IRS immediately, and the debt is being deducted bit by bit from my bank account every month, but I assume that it will show up on a credit check.

However, I don't want to give any reason for my prospective employers to not hire me. Would this give them pause? Should I try to find a way to clear the debt immediately, say, by asking a family member for a loan to pay the IRS?

I also would appreciate any information on when these checks are usually conducted. For example, are they conducted during the interview process, or after they make a tentative offer subject to the results of these checks? I haven't signed any authorizations to make these checks, but I'm not sure if they need my permission to do them.

Thanks for your help.

Is there a threshold for self-employment taxes?

Anonymous — Tue, 06 Oct 2009 15:01:46 -0800

I'm earning maybe $4,000 this year, of which $2,000 is as self-employed. Do I still have to pay around $300 in taxes? I'm wondering about the taxes for self-employment (I'm a U.S. citizen). I'm on track to make maybe $4,000 this year total, I expect to receive $2,000 of that total in the near future for work I did while self-employed.

While the funds will be transferred to my bank account in the country where I am currently located, I was looking at the tax forms and was surprised. Not only are there the "normal" taxes on the 1040 (which may amount to zero this year), but regardless of my total income, I still pay a bit under 15% (around $300, calculated from the $2000) for self-employment taxes above and beyond any other taxes. This would be quite a hit for me -- can anybody please offer some guidance? Is there any respite for self-employed people with a very low income?

Are the taxes on an American sweepstakes win by a Canadian worth our while?

stungeye — Fri, 25 Sep 2009 08:28:22 -0800

SweepstakesFilter: My wife (a Canadian like myself) recently won a large number of travel rewards points from an American chain of hotels. Help us determine if the prize is worth keeping considering what we'll have to pay in taxes to the IRS. We have confirmed the legitimacy of the prize. (The contest was handled by ePrize and we've been in direct communication with a rep from the hotel chain.) To redeem the prize we have been asked to fill out an IRS W8BEN Foreign Status form. The instructions for the form state that "Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S." Unlike casino winnings (for which the 30% tax can be recouped by a Canadian winner) I cannot find any information on the foreign tax liability for points-based sweepstakes.

When asked about taxes, a representative from hotel chain said the following:

"Although I cannot provide you with tax advice, it is likely that your tax liability will not be based on the published retail value of the points, but instead based on internal costs to provide the points."

The published retail value of the points was $35,000 and we've been told that the internal cost will be around $15,000. The points can be cashed in for approximately 12 round-trip overseas flights, or (for the sake of monetary comparison) converted into $10,000 worth of Amazon gift-cards.

So here are my questions:

Have you been in a similar situation? Care to share your "Canadian winner of US sweepstakes" taxation experience?

Can you suggest a firm to contact that will know how to deal with this situation? (So far the Canadian tax advisers we've contacted haven't been overly helpful.)

Should we accept the prize, even if it means paying $4,500 to $10,500 USD? (The former being tax on internal costs, the later being tax on the retail value of the points.)

If we accept the points and are surprised with a giant tax bill (say the full $10,500) can we return the prize to avoid the taxation?

Yikes! The IRS wants to auction off our mom's house!

luciosilla — Wed, 26 Aug 2009 17:38:15 -0800

Greetings all! My brother, two sisters, and I formed an LLC to administer the ownership of my mom's house when she died. Each of us is has a 25% partnership interest. The LLC was formed in 2005. Well, it turns out my brother has tax debts to the IRS dating back to 2002, and now the IRS wants to put mom's house on the auction block. We received a summons last week stating that the IRS has filed suit against the LLC. The suit has three counts:

1. To set aside the "fraudulent conveyance" of my brother's one-fourth interest in the LLC.

2. To foreclose the federal tax liens upon the subject property incurred by the delinquent partner. What really frightens us here that the unpaid IRS balances owed by the delinquent partner far exceed the market value of the house. The summons states, "The unpaid balances of the assessment described above are secured by federal tax liens on all the property and rights to property of [the delinquent partner], and all the property and rights to property held in the name of any entity or individual, or purportedly owned or controlled by any entity or individual, as nominee, alter ego, and/or transferee of [the delinquent partner]. The US is entitled to foreclose its federal tax liens upon the property and rights described above and to rec. the proceeds from the sale of the property to be applied towards satisfaction of the outstanding and unpaid tax assessments against [the delinquent partner]."

3. In the alternative, for foreclosure upon [the delinquent partner's] interest in the LLC

Mom's house has been in the family for 70 years, and it's truly upsetting to think that it could be auctioned off to pay off the my brother's tax debts, even though we other three siblings are completely innocent. I called the US Attorney here, and he referred my to a US Attorney in DC. The DC US Atty was surprisingly kind and sympathetic, or so it seemed at least. He told me that if we could buy out my brother's one-fourth share and hand it over to the IRS, no foreclosure action would be taken. The one-forth share would be determined by the IRS, probably based on the property tax assessment. This seems like a reasonable solution, and we're greatly relieved that mom's house won't end up being auctioned off.

Any thoughts on this situation would be greatly appreciated. Should we go forward with the the buy-out of my brother's share? Does the IRS even have a leg to stand on when it threatens to foreclose on the house simply because my brother had tax debts unknown to us when we created the LLC?

Withholding for overseas commision earners

Dag Maggot — Wed, 12 Aug 2009 17:30:03 -0800

We're starting a US based online T-shirt company that pays sales commisions to designers. In the event that the designer is overseas, do we need to withhold tax? If not, what IRS form do we/they need to fill out?

1099-S Solicitation Issue

GregWithLime — Thu, 16 Jul 2009 20:37:00 -0800

We are in the process of closing on the sale of our house (Hybrid-FSBO). I have a question about the 1099-S Solicitation form. Can you help? We are selling the home generally as FSBO. By that, I mean we paid a flat-fee to get listed in MLS. That means I don't have an agent to ask this question.

On the 1099-S Solicitation form, there is a question that says, "I have not used any portion of the home for business". Technically that is not true. But, tax-wise it is true. We have never taken the tax deduction for the square feet of our home that are dedicated to our business. We purposely did that to avoid the capital gains complication.

So, is the statement true since we did not claim to use any part of the home for business?

Thanks for the help!

Reporting rollover from IRA to 401k on U.S. Taxes

Anonymous — Mon, 11 May 2009 11:30:42 -0800

US Tax Filter: How do I report an asset transfer/rollover from an IRA into a 401k to the IRS so that we are not taxed for the amount? I know you are not my tax advisor. I do the taxes for for myself and my husband. In 2007, he neglected to give me a tax form and I filed our taxes incorrectly as a result. The IRS just sent me a letter, and I have 3 weeks to figure this out and fill out a 1040x for that year. I would like to do this myself if at all possible.

My husband had a 401k from a previous job that he wanted to roll into the 401k at his current employer. The previous one never did very well and the current one was making money. In addition, it was a fairly small amount, just under $15,000, and we were afraid we would lose track of it throughout the years. By the time he was able to get to this, the previous company had been sold, and this 401k was converted to a simple IRA. In retrospect, I realize he should have left the money in this IRA, but the momentum was already there to get this into his current employer's plan. In 2007, he got a check from the administrators of the IRA, and wrote a check for the same amount to his current retirement plan. He had about an inch of paperwork related to this, and feeling overwhelmed, he asked his HR department if there was anything else he needed to do, they said "no" and he stuck it all in the file cabinet. Taking tax advice from his employer's HR department is not a good thing, no? Especially since they didn't know they were giving out tax advice?

We got a letter Friday from the IRS saying that this was income we neglected to report, and that we owe back taxes and penalties of almost $7000. Digging around in our files, I found a 1099-R from AIG, the previous admin of the IRA, showing a gross distribution of the entire amount on line 1, and that the entire amount is taxable, per line 2a. He found a Confirmation of Asset Transfer/Rollover from Vanguard, the admin of his current 401k, for that same amount. How should I have reported this? I am assuming that we would not owe taxes on this since 401k assets are taxable when they are cashed out far in the future. However, I can't find anything on the IRS site or anywhere else reputable about how to report this. Apparently we are the only people in the world who have ever cashed out an IRA and put the money into a 401k.

Ultimately, what I would like to do is file a 1040x the way I should have filed the 1040 in 2007, then appeal the notice from the IRS and use a copy of the 1040x as documentation as to why we don't owe the taxes.

You can also email me at whining.about.taxes@gmail.com

How should I handle taxes when I babysit?

DeucesHigh — Sun, 03 May 2009 16:29:06 -0800

Baby-sitting employer wants to pay under-the-table, but also claim the Child Care Credit using my SSN as a care provider... isn't this asking for trouble? I'm asking this on behalf of my girlfriend (Ms. DeucesHigh, in a few posts).

Last year, she worked as a babysitter for a local family, watching the kids full-time over the summer, and 10 hours a week during the school year. All-told, she made about $10k in 2008 from them. They never asked for her SSN, there was never any sort of discussion of taxes, and they were not withholding income tax or paying payroll taxes. Clearly it was understood that she was being paid under-the-table, which is the way they handle things with a few other individuals who also watch their kids. (Just to note, I'm not looking for opinions on whether this was a dumb idea, or whether she should have paid her taxes or not -- that can be taken to MetaTalk).

Anyway, this spring rolls around, and her father files her tax return as he usually does; she had a W-2 from a school job, but didn't get anything from her babysitting employers (W-2 or 1099) and he didn't factor in that income.

On the 10th of April, her employers e-mail and ask for her home address and her SSN, so that they could fill out a form to get the Child and Dependent Care Credit (35% of the money they spent on child care, up to $3000 for 1 child, or $6000 for 2 or more). We weren't really considering the ramifications (and she had no reasonable way to refuse, in any case), so she gave them the information.

She sent them a follow-up e-mail asking whether it was a good idea to list them as a childcare provider, since there was no corresponding income reported for her, or expense reported for them. Her employers said that they have done it before with no problems, but that they'd look into it and ask their accountant. Nothing more was said on the matter, and we assumed they did not include her on their return. Today, though, they sent another e-mail saying that they did go ahead and list her as a childcare provider, to get the tax credit... long after it was possible for her to file an amended return to try to preempt any problems.

The Household Employer's IRS Tax Guide references the Child and Dependent Care credit, and vice versa, so it wouldn't be inconceivable to think that the two are often filed together, and probably cross-referenced pretty routinely. It seems like a no-brainer that claiming a tax credit for childcare that is not otherwise substantiated by tax returns would raise red flags for an audit (for her, or for them, or both).

It's somewhat surprising that they didn't 1099 her to leave her unfairly holding the bag for all of the taxes, since that would keep them in the clear to get their tax refund, and most people wouldn't fight it. However, it is clear that their legal responsibility was to pay payroll taxes as a Household Employer (see below). They were required to furnish a W-2 Wage and Tax Statement by Feb 1, and to submit Schedule H to report the household employment taxes.

Given all of this information, what is her best course of action?

-Ignore the situation, and hope that no one gets audited?
-File an amended tax return as though she was self-employed, and get hit with the full self-employment taxes and possible penalties?
-File an amended return as an employee, and file Form 4852 to request a W-2? (she's legally an Employee, as noted below, but she doesn't want to do this, since that gets the IRS involved automatically to hunt for the unpaid payroll taxes, and would probably irk her employers)

Thanks for any input!

---------------------

From the IRS article on the Dependent Care Credit:
"If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. If you are a household employer, you may have to withhold and pay social security and Medicare tax and pay federal unemployment tax. For information, see Publication 926, Household Employer's Tax Guide."

---------------------

According to the Household Employer's Tax Guide:

"Do You Have a Household Employee?

You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done, but how it is done. If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job.

Example: You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Betty follows your specific instructions about household and child care duties. You provide the household equipment and supplies that Betty needs to do her work. Betty is your household employee.
Household work. Household work is work done in or around your home. Some examples of workers who do household work are: (...Babysitters...Nannies...etc etc)

IF you ...
A-- Pay cash wages of $1,600 or more in 2008 to any one household employee.

THEN you need to...
Withhold and pay social security and Medicare taxes.
-The taxes are 15.3% of cash wages.
-Your employee's share is 7.65% (You can choose to pay it yourself and not withhold it.)
-Your share is a matching 7.65%. "
---------------------

How to come clean with the IRS?

Anonymous — Mon, 27 Apr 2009 17:13:44 -0800

How to handle IRS problems (failure to file, lost records, possible debt, interest and penalties) following several years of mental illness, unemployment, homelessness and physical disability). I want to clear up the mess, apply for social security, and wipe the slate clean. I have no money for lawyers, accountants, or the types who advertise on the radio. What would be the best way to sort this out. I admit I am afraid and fear that too brutal an encounter would send me underground again.

I've got this friend . . .

nola — Mon, 27 Apr 2009 16:59:40 -0800

Stupid question filter : "There is no law that requires U.S. citizens to pay income tax" Is this true? Can anyone site the Law? First off let me say I've got no dog in this fight, I'm trying to figure out a reasonable answer for a friend that made the claim "No law requires us to pay income tax" This is one of the videos he wanted me to watch. Why is this position bullshit? I know the IRS inforces, the questiong I have is what is their legal authority? Is there a law in black and white, or am I just missing the point?

1099 help for my nonprofit group

Anonymous — Mon, 27 Apr 2009 10:21:52 -0800

My nonprofit did not send out 1099s. Now what? I am the treasurer for a small club-like nonprofit. In 2008 we started paying someone to do small tasks like setting up our meeting hall, arranging food service, etc. Her pay came out to about $1000 for the year. As this was our very first paid individual in the history of the organization, I did not send out a 1099 to her, or collect her tax data, simply because it did not cross my mind. She has not requested it either. I'm thinking that I made a big mistake here, and I don't have a lot of accounting background (I'm kind of the de-facto treasurer). What should I do now that all of the deadlines have passed? I desperately want to get everything above board, as the IRS makes me itchy.

Help Me Keep the Guys in the Green Visors From Chopping Down My Door.

foxy_hedgehog — Wed, 15 Apr 2009 04:34:06 -0800

I can't pay my taxes right now, but according to the IRS's information form on payment plans, if I can pay within 120 days I don't need a installment plan -- which would charge interest. The form requests that I call the IRS to notify them and get more information. However, I haven't been able to get through on their phone line for the last week, and now it's the 15th. What should I do? I can pay what I owe within 120 days, just not right now, and I would love to avoid the interest charges that come with a payment plan. The only official form that seems to let you request a late payment is the installment plan request -- what form should you submit, if any, to tell the IRS that payment is coming within 120 days?

I don't want you to think I'm using AskMe as a substitute for doing the footwork myself -- when I say I can't get through to the IRS on their phone line, I don't mean that I've been put on hold for long periods of time. I mean the system has disconnected me after telling me it's swamped with calls from fellow taxpayers.

I've tried emailing my accountant, who, one would assume, would both know the answer to this question and take care of it for me, but either because he too is swamped or is being unprofessional I haven't heard back from him. Yes, I'll keep this in mind when selecting a tax preparation professional for next year.

I'm sure their is a simple answer to this. I just want to make sure that I take the proper steps to avoid being in any kind of arrears with the IRS.

Thanks, and good luck to everyone getting their paperwork out!

Does the IRS Negotiate?

brigita — Mon, 13 Apr 2009 19:16:28 -0800

Taxfilter: Is it possible to negotiate with the IRS? While a thick envelope was a good thing to receive when applying to college, getting one from the IRS is all kinds of bad. I apparently forgot to import investment information from one of our financial institutions for 2007 which put us WAY in arrears, meaning we owe a good chunk of cash, the interest on said chunk, *and* a penalty amounting to about 4x interest.

I'm a total socialist and am fine with paying the tax $$ + interest we owe, but the penalties...not so much.

My question is this: is there any way I can get them to either take out or knock down the penalty amount? Would I get better results if I were to write a letter or call? Does our ability to pay the bill in full help or hurt our chances of getting some $$ shaved off?

I do have a wee bit of quasi-leverage: I probably rushed through the tax prep on account of having to get the paperwork filed before having MAJOR surgery to treat my colorectal cancer. I don't think I've swiped my cancer card as yet, but if I'm going to, this is the time!

Any and all strategic advice is appreciated!

Are IRS tax liens public record?

raz5 — Mon, 13 Apr 2009 08:40:55 -0800

Are IRS tax liens part of the public record? If so, is there a public database where I can access current/historical liens against individuals? A relative recently passed away without a will on record. His assets should be distributed evenly among his heirs (per NYS probate law), however, one of his sons is trying to be named executor of the estate. He's a pretty sketchy/untrustworthy guy...among other things, I'm told that he has/had IRS liens against him (among his other skills is social security/disability fraud, but I think that's much harder to prove).

His siblings want to ensure that this guy isn't named as executor, as they don't trust him for a second, and figure that showing a history like this would pretty much cause a judge to disqualify him as a potential executor and name an impartial third party in his place. I'm wondering...is there a place where one could look this stuff up to get a confirmation of sorts?

I'm still waiting on my chicks for free

malp — Fri, 10 Apr 2009 14:19:12 -0800

As I understand it, the US government is giving away $8000 each to almost all first-time home buyers this year. How do I protest the government giving away money for free?

Married Filing Jointly - how do we correctly fill out our W4's?

Anonymous — Wed, 08 Apr 2009 14:50:22 -0800

Married Filing Jointly - how do we correctly fill out our W4's? Just finished filing our taxes for the year and owed a decent amount.

The person helping us file (not our normal tax guy, who moved out of state) wasn't extremely helpful in explaining why we owed money as compared to last year. A vague explanation was given saying that we might have not filled out our W4's properly and/or that we might be in a higher income/tax bracket than last year.

Looking over the W4 - we obviously need to complete the "Two earner's/multiple jobs worksheet". Do each of us complete that worksheet on our own w4 or does only one person need to complete the worksheet and fill in that w4 accordingly? (And if only one person does the worksheet, how does the other person fill out their w4 accordingly?)

A little additional info:
SO has the higher salary (and usually files as head of household)
No children
Zero dependents

Reporting fellowship income to the IRS?

twiggy32 — Thu, 02 Apr 2009 20:25:05 -0800

How do you report fellowship income from a 1098T form to the IRS?

What to do when a company won't give me a correct 1099?

Ookseer — Fri, 20 Mar 2009 13:17:24 -0800

A client sent me a incorrect 1099-MISC and now refuses to correct it. It's in their tax favor. What can I do? (No, you're not my accountant. But my accountant isn't going to get back to me until Monday and this is going to bug me all weekend.)

So they say they've paid me a several thousand dollars (and change) more than they did. This gives me a higher tax burden and them a tax break. It's not an accounting error. I've compared my invoices to my deposits to verify my number. And it's not "a check or invoice crossed the new year" problem. They report a suspiciously round number, the actual number is one of the least round numbers I've ever seen.

I stopped doing business with them early in the year because they refused to pay me. There were some bad words and letters from lawyers sent, and apparently now they're not talking to me at all. Emails, phone calls and letters directed to personal and business addresses have all gone unanswered. I'm not even sure they're still in business.

Do I report the correct amount and deal with the inevitable IRS inquiry, tip them off to the IRS beforehand, or suck it up and pay the extra tax as a "not worth the trouble" fee?

Madoff IRS Issues

Pennyblack — Sun, 08 Mar 2009 10:48:34 -0800

Could a soft (no more investigating) Madoff plea deal protect the IRS from claims by victims? Didn't they pay real taxes on fake income? Also: If the government demands that people who actually did pull out a profit pay that money back, shouldn't the IRS also pay back the money paid in taxes on that profit? I guess I'm just worried that Madoff's wife, kids and friends will be allowed to keep 'their' assets. Also: can Madoff's victims sue Mrs. Madoff in civil courts? What a mess, eh?

Why Withholdings?

Rykey — Wed, 04 Mar 2009 11:10:37 -0800

Taxfilter: Why does the (US) federal government bother with payroll deductions? Assuming that each year, the vast majority of the taxpayer population either owes a tax payment or gets a tax refund, why does the federal government bother deducting taxes from our paychecks? Why don't we just get a statement of our earnings, a tax table, and a bill every year? That approach would seem to save a lot of money and bureaucratic layers (from the administrative aspects of overseeing withholdings).

I've done a little searching for the answer, but most of what I'm finding devolves into libertarian theories of "why the Federal government shouldn't be taxing us at all" or "flat tax" arguments. Outside of that, what I've come up with so far is that maybe:

1) By and large, people couldn't be trusted to save enough for an annual bill, so it's more productive for the Fed to just oversee taking small amounts from earnings (the "pay as you earn" system).

2) If everyone paid a total tax bill each year, the revenue cycle would be thrown off; relatively large amounts of revenue would flow in at certain times of the year (tax season), with relatively little coming in otherwise.

3) There are so many variables and caveats to taxation, with so much corresponding paperwork, that overseeing payroll deductions is the easy part of collecting taxes.

4) There's more room for fraud (from you and your employer) if the Fed isn't keeping tabs on your weekly earnings.

IANAA (accountant), so I'm sure I'm missing something here. What's the deal?

On tax overpayment and refunds

trokair — Wed, 04 Mar 2009 05:35:38 -0800

TaxFilter: Paid my taxes for 2008, then got a refund check? Did I mess up? I e-filed my taxes with TurboTax this year, and ended up owing ~$700 federal and ~$300 state. I paid the next day with a direct draw from my bank account (this was early February). Just yesterday, I got a refund check from the U.S. Treasury in the mail for tax overpayment something along the lines of ~$1700. Did I mess up (and overpay), and the Feds just caught my mistake? The number just seems higher than I would have expected...especially since I didn't expect a refund!

Should I be worried?

Will Obama give me money?

photomusic86 — Tue, 24 Feb 2009 20:12:05 -0800

Will the stimulus law affect my tax filling? Because of a minor miscalculation when i changed jobs, I owe about $100. Will the stimulus change that? or does the law affect me in any other way?
Single male, 23 and living with parents.

Messed up my tax return - what now?

Anonymous — Thu, 19 Feb 2009 10:30:37 -0800

I filed my taxes online about two or three weeks ago, and completely forgot about a mutual fund I own. Or rather, I remembered it, but because I didn't take anything out of it or put anything into it, I didn't think anything of it. Of course, I forgot about the dividends. So, today I get my Form 1099-DIV from Goldman Sachs, and find that I received $71.04 in total ordinary dividends. What should I do? My taxes were filed electronically and I've already received my state refund. Should I just sit on it and if I'm questioned by the IRS, pay the $10 or whatever in extra taxes? Will I get fined a huge amount if I don't alert them now? If I do alert them, how would I go about doing that? Asking anonymously because I feel like an idiot.

IRA to RIRA Advice

JPowers — Mon, 16 Feb 2009 19:26:04 -0800

My Dad wants to roll his IRA over to an RIRA and use the money to buy my brother a townhouse. Is this a bad idea? The Facts

The Facts: My dad wants to roll over an Individual Retirement Account (IRA) to a Real Estate IRA (RIRA). He will use the RIRA to purchase a townhouse for a total cost of $220,000 (this will be the only asset owned by the RIRA). All RIRA financial commitments, debits, and credits shall be recorded on the RIRA account ledgers. There will be no mixing of RIRA funds and personal funds. He plans to rent the townhouse to my brother for $1,554 per month. The rent will be calculated as shown here. In a nut shell, my brother will pay rent each month equal to the reoccurring monthly expenses (tax, insurance, etc.) plus 3% interest.

The Questions

- Would this be considered a prohibited transaction by the IRA?

- When the townhouse is eventually sold and the funds are in the RIRA, can my Dad roll them over to an IRA?

- Can he take distributions from the RIRA?

- Can he manage the rental or does it have to be someone else? In other words, can he be the one responsible for finding tenants, arranging leases, getting insurance, making repairs, or would this be prohibited by the IRS?

- Bottomline: Is this a bad idea? Is this too risky? What are the pitfalls that you see?

Thanks in advance for any help you can give us.

Taxfilter

The Straightener — Thu, 29 Jan 2009 17:16:47 -0800

Can the amount owed against 1099-misc be deducted from my tax return? Or will I need to make a separate payment to the IRS? I did some contract work at the end of 2008 and just got my 1099-misc form. I understand that I have to pay taxes yet on that money, but am wondering if I will simply be able to automatically deduct the amount owed to the IRS from the amount I'll receive in return for my taxed 2008 employee wages.