Originally Posted by GatorB

You file you taxes on it. You need to fill out a schedule SE( that stands for Self Employment Tax ) in addition to you 1040. This is the same as FICA tax for people that have "regular" jobs. This apporximately about 1/7 of what you earned on that 1099. 50% of what you pay in SE taxes is deductable off your taxable income.

You also need to fill out a schedule C or schedule C-EZ depending on whether or not you plan on declaring more than $5000 in business expenses.

it's accually best if you to to H&R block and have an expert do it for you sicne this is your first time. It's not hard once you know what you are supposed to file.

Also if you earned less than $600 in a year with a sponsor they are not required to send you a 1099 but you are still required to report that income on your taxes.