| | How to Calculate the Tax Liability for a Portion of Income
I'd like preface this by stating that I am not looking for any moral or ethical judgments. If you cannot offer me advice on calculating the taxes or other helpful information please do not respond. This may seem rude but I've found people on message boards can be extremely judgmental.
I need help calculating the tax consequences on a portion of my income. I was working as an independent contractor for a company my friend worked for. Through some lies and misrepresentations he convinced me to allow him to earn extra income under my name. I understand this was wrong and quite possibly illegal but I did not completely understand the situation at the time. The situation as since been rectified and will NEVER happen again. He earned $3,436.02 in my name. I earned a total of $4,854.03 from this company, none of which was taxed since I was an independent contractor.
How do I calculate the tax consequences for his portion of the earnings? He has agreed to pay me for this but I want to make sure I do the calculations myself so he cant screw me over any further.
I'm sure someone will need further information regarding my financial situation to answer this question but I am not sure what to provide. I can tell you I live in FL so I do not need to worry about state tax consequences. Please let me know what is needed and I will try to provide it.