Originally Posted by
booklady1952
Your friend must have been selling LOTS to owe LOTS of money. Did she not keep receipts to show her expenses?
Plus the IRS will collect Social Security on self-employed people. It's twice the rate that collected from those who work for an employer.
It's called "self-employment tax"... and it's 15%. Whenever you do work for someone and they don't withhold, but prefer to pay you directly and report it on a 1099 form, they come out better financially, but you will owe 15% on the income. So if someone is paying you under a 1099 reporting, be sure to charge them that extra 15%...