“Ok so If i consider myself independant I should fill out (or have my dad fill out) a 1099 MISC?”--->Not you but your ER, the payer.You need to file Form W-9 that is sent to you; Form W-9 is the IRS form used by a company to request your taxpayer identification number. By submitting a W-9 to your ER, you are certifying that the tax id number you are providing is correct and accurate. You need to get a blank Form W-9 to fill out if you or your business are hired to provide services to another company. If a business pays you $600 or more as a non-employee,as you are an IC, it is legally required to report it to the Internal Revenue Service (IRS), using a 1099-MISC form.
“And then use which form to file? 1040, 1040-A, 1040-EZ? “--->As long as you do not itemize your deductions on 1040 Sch A, you must use either 1040A or 1040EZ. Please visit the IRS Website here: Tax Topics - Topic 352 Which Form – 1040, 1040A or 1040EZ?
“And do I fill out a Schedule A, Schedule C, Schedule SE? “---> It depends on the situation; as said above, as long you itemize your deductions,i.e, your medical expenses, mortgage interest expenses, or real estate taxes or etc on 1040 Sch A,then you need to file Sch A. As an IC, yes you MUST file Sch C of 1040 as long as your net earnings, I mean the amount on Sch C line 31, is $400 or exceeds $400; You may have to still file Sch c to deduct yur Net operating losses if you have.Also as long as the amount on Sch SE line 4 is $400 or exceeds $400, then you need to file Sch SE and you need to pay quarterly selfemployment taxes. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). Also if you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. However, you do not have to pay estimated tax for the current year if You had no tax liability for the prior year; you were a U.S. citizen or resident for the whole year ;your prior tax year covered a 12 month period.
Please visit the IRS Websites here: Self-Employment Tax (Social Security and Medicare Taxes) Estimated Taxes http://www.irs.gov/pub/irs-pdf/f1040sc.pdf http://www.irs.gov/pub/irs-pdf/f1040sse.pdf
“And as for 2011 when should my dad start taking out witholding so i'm not faced with the same problem next year?”-->It depends on your situation. It is critical that your dad, as a business owner, correctly determine whether you providing services are an employee or independent contractor. Generally, your dad must withhold income taxes, withhold and pay Social Security and Medicare taxes, FICA taxes , I mean from ypur paychecks and pay unemployment tax ,i.e., Federal unemployment tax, or state unemployment tax or etc.on wages paid to you, an employee. However, Your dad does not generally have to withhold or pay any taxes on payments to you, as an independent contractor. As said above, as long as you are an IC, then you need to file and give W9 to your dad(By submitting a W-9, you are certifying that the tax id number you are providing is correct and accurate) and your dad need give you 1099MISC as long as your dad’s business pays you $600 or more as a non-employee, as an IC. it is legally required to report it to the IRS, using a 1099-MISC form. If you arer an EE, then your dad must file a W2 form for you for whom he pays wages or withhold income, Social Security or Medicare tax, federal tax from your paychecks. Your dad must send a W2 form toyou no later than January 31 2012 as you become his EE in 2011.
Please visit the IRS Websites here: http://www.irs.gov/pub/irs-pdf/fw2.pdf http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3