Paper carrier taxes

[Patrick425]

My 20 son is going to take a job as a Journal/Sentinel paper carrier to supplement his summer baseball coaching income. They stated to him that they treat carriers as independent contractors and will 1099 him. Anyone have any experience with this? Does he need to set up a business?, pay estimated quarterly taxes?, schedule C?.

[LouisEly]

Highly unlikely he'll earn enough money to have to pay estimated quarterly taxes. Doesn't need to set up a business, but will need to do a schedule C (not difficult for a simple job). I had several jobs when I was young where I was a 1099. Just make sure to keep track of all deductible expenses including any mileage.

[Patrick425]

Thanks for the info Louis. Will he then have to pay a 15.3% self-employed SS tax on the net profit (after mileage)?

[LouisEly]

It was 20 years ago... I'd look up 2018 tax forms and plug in what you think he'd make and run the numbers.

 

All I remember is that it was no big deal. I was in outside sales so I had plenty of mileage to deduct.

[JosephC]

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/1099-misc-independent-contractors-and-self-employed/1099-misc-independent-contractors-and-self-employed-2