Independent Contractor Taxes?

I am 19, this will be my first time filing for taxes.
I live in Texas and I worked for a photography company for only 2 months. I was an independent contractor. I only earned $916.00, no taxes deducted. I just got my 1099 form. I don't think I will have enough to cover the taxes soo... will I be able to cover it through another job that I had? They deducted taxes and I should get enough through them.


My actual question is.. once I get my taxes from this other job, can I transfer the funds to cover the taxes for the photography job?

Well the good news is you have no state tax to worry about living in the state of Texas. For your federal taxes you'll file all of your 2007 income (from the Form 1099, W-2, and any interest or dividends you may have earned) on a single tax return and all federal tax withholding is also reflected on that same Form 1040. There is no 'transfer of funds' required on your part...as all taxes withheld goes to cover all income reported. Whether you've had enough tax withheld depends on (1) your total taxable income for the year, (2) your filing status, and (3) any deductions or credits you might be eligible for. As you are 19 years old and this is your first time filing taxes you'll want to determine whether Mom and Dad are claiming or entitled to claim you as their dependent. If they claim you, you'll not be able to take a personal exemption for yourself. They generally may still do so once you hit 19 years of age only if (1) you're also a full-time student for 5 or more months of 2007, or permanently and totally disabled, and (2) you lived with them for more than 6 months in 2007 and (3) you did not provide over half your own support/living expenses for 2007.

One other thing to consider. This year IRS is closely scrutinizing 1099s and firms' decisions to classify folks as independent contractors vs. employees. Some companies (certainly not all) improperly treat employees as independent contractors to push some of the tax-paying obligations onto the recipient of the 1099. The question to ask yourself is whether the photography company had a supervisor who controled the day-to-day performance of your work. If so, you were likely an employee and should get a W-2. If, on the other hand, you controlled your own work w/o day to day supervision and outside control the Form 1099 is correct and you'll report the income on Form 1040, and file Schedule SE to pay the self-employment tax (consisting of social security and medicare taxes), and Schedule C. When you look at Schedule C you'll see that in addition to reporting income during 2007 (from the 1099), you can also deduct any ordinary and necessary business expenses you incurred while performing your photography duties. If, for example, you drove your car, unreimbursed, from home to home to take pictures for your clients you may well be able to deduct your mileage (at 48.5 cents a mile), if you purchased supplies that were not provided for or paid for by the company...they too are deductible.
Good luck!

You file one tax return.

The W-2 income goes on line 7 of the 1040, the 1099-Misc income goes on schedule C and schedule SE.

On the SE form you will owe $129 in SE tax. If your income is high enough to be taxed, the calculation will cover all income.

If your W-2 withholding is enough to cover the entire tax bill, fine (there's nothing to "transfer"), if not, you owe. If you owe, you write a check.