PHS60

No, I am refering to income generated by work as a sub contractor. This 1099 form is issued by employers to peopple or companies they employ as SUB CONTRACTOR"S. These's sub are NOT employees of the employer and preform a specific job or funtion as contracted. There are no TAXES deducted by the issuer of the 1099. I have looked this issue up on the Poverty Guidlines which states the figure is determined on "PRETAX CASH INCOME." One theory is that the 1099 is the pre tax income. This is true however this is not the cash income since the sub incurred deductible expenses so as to perform the job or function. Example: I am an owner of a computer repair company. I contract to repair computers that another companies manufaters. If none need repaired; no pay. If one needs repaired I extend my service to go repair the computer. I get paid. Note, for me to provide this service I must have a computer and other diagnostic equipment. I buy or lease this equipment therfore these items are deductible from the 1099 amount to determine my "PRETAX CASH INCOME." So, once these items are deducted THEN do I have my "PRETAX CASH INCOME? If this theory is correct the noted amount then would be compared to the poverty level guidlines.

I have a 1099 that list my GROSS INCOME at $13,000. Natuarally I have deductions that reduce my income below the Poverty threshold ($10,830.00 ). My Q is: Is the poverty threshold based on GROSS INCOME or my income after business deductions?