If you received a 1099-MISC form from your employer who paid you cash and checks but didn't take out taxes how do you file your tax return and will you qualify for earned income credit if you made ar?

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1291419

2026-03-16 10:10

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Form 1099-MISC is Miscellaneous Income. The person or business that gave you that form doesn't consider you an employee. So they didn't withhold taxes (income, social security, Medicare). They're treating you as a self-employed person, which makes you responsible not only for income taxes but also for social security and Medicare. You'll need to file Schedule C or C-EZ(Profit or Loss from Business) and Schedule SE(Self-Employment Tax) along with Form 1040.

The worst case scenario (Single filing status, only your personal exemption, no dependents, no expenses to deduct from that $7,000 income) for 2009 is that your self-employment tax is $989, and your earned income credit is $495. So you would owe $494.

Note that business sometimes treat people as self-employed when really they're employees. If you really think that you're an employee and that the business should be giving you a W-2 form and withholding taxes from your earnings, try to correct this misunderstanding with the business. If they refuse to correct it and you still feel that you're an employee, you should contact the IRS at 1-800-TAX-FORM, and they'll help you sort out your true status.

You're not the only one this has happened to. This happens often. The IRS needs to know, because the business is avoiding filing a number of forms by viewing you as self-employed.

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