I just changed jobs in June and will get a 1099 at the end of the year. What do I need to do for PA & Federal?

I just changed jobs - went from being an employee working 25 hours a week, to doing some subcontract office work, only 5 to 10 hours per week. My husband is the main wage earner now.

My new client pays me every week, and will be issuing me a 1099 at the end of the year.

What do I need to do to make sure everything is legal with PA and the government? Do I need to pay estimated taxes to the government, or just report all the income at the end of the year? (I don't know if I'm earning enough for estimated taxes.) How about state taxes? Do I need to register myself as a business in PA, or not?

I'd rather not go through the trouble of registering a business if I don't have to, especially since I'll only be earning $100-150 a week! I was just going to use my name as the business name, if necessary. I will report every cent I earn on our taxes at the end of the year, and I've been keeping track of all business expenses, but is there something else I should be doing?

Thanks in advance for any help you can provide!

2 Answers

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  • Judy
    Lv 7
    9 years ago
    Favorite Answer

    PA, you'll file a PA-40 and a PA schedule C showing your income both as an employee and, on the schedule C, for the 1099. You can still file a joint PA return with your husband if you want to. The tax won't be any different.

    You'll show your 1099 income on a local return also.

    Make quarterly PA, local and federal estimated payments.

    You don't have to register as a business. Just use your name.

  • tro
    Lv 7
    9 years ago

    you will be reporting this 1099 income on sch C and SE, you will report your W-2 income on line #7 on the 1040

    your local community might have some licensing rules you would need to research but unless you are advertising as a dba(doing business as) there would be no registration, your sch C will make it clear

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