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  1. #1

    Default What Compensation Will Be Reported to Social Security for an Independent Contractor

    Question:

    As a real-estate agent working on commission how is the 1099-MISC calculated? Given I may work 20 hours a month, two months with no commission, then on the third month receive a check. Is the month I receive the check considered a "work-month" ($750/$1040)? Or is the total amount of the 1099 divided by twelve for twelve-months?

    Help?

  2. #2
    Join Date
    Sep 2010
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    Default Re: What Compensation Will Be Reported to Social Security for an Independent Contract

    Huh? 1099's are the gross payout given annually. There is no such thing as a "work-month." With the exception of starting a business, you're expected to make estimated tax payments quarterly on 25% of your annual tax liability. There's no division done at all.

  3. #3

    Default Re: What Compensation Will Be Reported to Social Security for an Independent Contract

    This applies to disability?

    Quote Quoting flyingron
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    Huh? 1099's are the gross payout given annually. There is no such thing as a "work-month." With the exception of starting a business, you're expected to make estimated tax payments quarterly on 25% of your annual tax liability. There's no division done at all.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: What Compensation Will Be Reported to Social Security for an Independent Contract

    Missed this was posted in the disability forum. Thought it was a tax question.
    A 1099 is still an annual thing. It has only a total amount for the year. There's no other breakdown.

    Which disability (SSI, SSDI)? Anyhow, if they see SE income, they'll want you to explain not only WHEN YOU RECEIVED the money but also what work you did over the months involved. You'd best have some other breakdown, and preferably some contemporaneous records as to what work you expended that is tied to the payouts.

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