"You were not set up as a 1099 employee with us. we claim your invoices as an expense to us, but if you want to be a 1099 you should fill out a W9 form with us."
This was the email I received from the company. Does anyone know how or if I have to claim this on my 2006 taxes? Thank you for any and all help!
2007-01-19 06:24:11 · 4 answers · asked by Matthew G 1 in Business & Finance ➔ Taxes ➔ United States
You will have to claim it on your taxes just to avoid future headaches especially when IRS suddenly thinks of flagging your return.
The only difference with the company setting up the 1099 is that, when they do set it up, they report to the IRS all of your earnings and it would be clear to the IRS what they should be expecting from your return.
In anycase, you get a tax shelter from being a Freelancer, you get to deduct a lot of expenses, travel, clothes, food etc (to some extent)... check with your accountant.
2007-01-19 06:34:45 · answer #1 · answered by DigitalDNA 2 · 0⤊ 0⤋
If you worked as a freelancer (independent contractor), the company is required to send you a 1099 if you were paid more than $600. I am not sure why they are making it sound like it is up to you. They should be requesting your taxpayer ID number and sending you a 1099.
That said, it doesn't matter whether or not you receive a 1099. The money you were paid is taxable.
If you have any expenses relating to earning this money, they may be deductible. Check out schedule C and its instructions.
If you have no related expenses, you can enter the income amount in the other income line on the face of Form 1040.
Either way, you also need to check out schedule SE for self-employment taxes.
(By the way, the company should not use the term "1099 employee." I assume that you really were an independent contractor. If you were an employee, taxes should have been withheld by your employer and you should receive a W-2, not a 1099.)
2007-01-19 06:37:28 · answer #2 · answered by Take Responsibility 2 · 0⤊ 0⤋
Receiving a 1099 or not has no bearing on whether you have to claim it as income.
Report in on your Schedule C as if had received a 1099.
2007-01-19 06:27:57 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
file as a independent contractor. go to the post office and they can give you the form you need.
2007-01-19 06:32:22 · answer #4 · answered by bjd72003 3 · 0⤊ 0⤋