Filing taxes on Freelance wages

I'm not sure where to post this so I figured i'd post it here. Moderators, feel free to move to appropriate place. Okay, so I've been told I have to file a 1099 for freelance wages earned so far. Is this right? Please someone with more know-how help me.

 

http://taxes.about.com/od/taxplanning/a/freelance.htm

 

thanks, but i saw this when i was googling about it. Anything else?

 

Typically, freelancers file quarterly IRS payments (as I understand it from my freelancer wife who dutifully makes these quarterly payments rather than pay for the drunken binges to far-off lands that I usually propose as an alternative).

 

You'll need to file Schedule SE, which is a pretty basic form and should be available anywhere tax forms are available, or online.

You'll fill in the amount you earned from any 1099s you have (think of a 1099 as being like a W-2, except without any withholding), then you'll add up a couple other lines, and it'll give you the math to do. Basically, you'll be paying 15.3 percent of the amount you made in self-employment tax -- making up for the Social Security and Medicare tax you haven't been paying.

And of course, whatever's on the 1099 also has to be reported as income and have income tax paid on it. But the kind-hearted souls at the IRS will allow you to deduct half the self-employment tax figure.

If you haven't been putting money aside to pay the taxman, you're in for a pretty sharp sting.

ETA: And yes, if you're making more than a certain amount, and I have no idea what that amount is, you're supposed to file quarterly payments. If you don't, I believe there's a penalty. That's to keep you from holding back the money until tax time so that you can make interest on it.

 

If you made less than $600, i believe you aren't taxed on it.

 

It's $400, and I'm pretty sure that's just for self-employment tax. It still has to be reported as income.

 

As offset you can also deduct related expenses if they can be documented.