Please explain 1099 form to me!

[wannabmomof3]

Im confused. Does the 1099 form mean that no taxes are taken out throughout the year??

[ootus973]

Yes. A 1099 makes you responsible to pay your own taxes in that year. If you're worried, the IRS has estimated tax forms and calculators online, and you can actually make estimated tax payments throughout the year. They're pretty easy to find online.

[tikyg]

yes, what previous post said.
I also recommend you make payments...even if they are not exact becuase that way you avoid a small penalty they charge once you do taxes plus then you dont have to pay the full amount.
With a 1099 you are considered a contractor (self employed type deal)....I did it for 3 years....with this you also pay higher taxes becasue when you work for a company they pay part of your taxes but with a 1099 you are fully responsible....when I did it I assume I needed to pay 25% and every paycheck i took 25% out and put it into a savings account and sent my quarterly payment to the IRS so when the time to do taxes came i was liable for almost nothing....all you sent is a slip with your info and the check...very simple....my tax person found the slips for me but i am assuming you can find them online

[wannabmomof3]

Awesome. Thank you