1099 and business-related expense deduction?

Question

To figure out and claim business-related expense deduction for having worked under 1099 as an independant contractor, what form do I use?

Is it Form 1040-ES or Schedule C-EZ (if my exception is under IRS threshold) or both?

Answer 1

Schedual C-EZ or C, whichever you're required.

(Never limit your business deductions to 1099's that you send out. You will almost always be able to claim an aweful lot more. Examples: mileage on your vehicle, square footage in your home and depreciation, if you use it for the business, any cash expenses that you get receipts for, depreciation on equipment...)

Answer 2

You can use a standard mileage deduction if you kept track of mileage, or if you kept track of receipts, actual cost for gas. The standard deduction will benefit you more. You can figure it out by driving your route, writing down how many miles it is and then figuring out how many days you delivered on that same route last year. Anything you used for that job can be written off. If you had to pay for banding/bagging/etc, you can write off the expense of that. I believe you can write of car servicing as well. I did taxes in 2006, so things may have changed since then, so just call a tax service, such as Liberty Tax/H&R Block and ask them to be sure or if there is anything else.

Answer 3

1040-ES is Estimated Tax, not the right one for business deductions.

You use Schedule C or Schedule C-EZ to figure your deductions from self-employment.

Answer 4

Schedule C-EZ if you show a profit of $1500. Schedule C to be sure.