I recieved a 1099-misc form for only $650.00 of freelance computer work that I did for somebody.....?

Question

I"ve been going though turbotax and it's telling me that I can do deduction on business expensies. This was only a couple of jobs for a total of $650 and a very small amount of money. But my taxes have became very complicated now. It's asking me for vheicle use and vehicle expensies. How can I do this for only $650.00. If I start putting all the gas and repairs to my vehicle for the whole year and I only made $650 for a couple of trips. LOL. That won't sound right to the IRS.

Answer 1

I think what you would have to do is just record the mileage and gas used for ONLY the time you did the jobs. That is the way we do our taxes. We do our mileage and gas only for driving to the state we are going to work in, gas used while there for work only, and mileage going to and from work.

Answer 2

Anyone who paid you more that $600 has to file a 1099, and you can only charge the mileage you used for those jobs, and only if it isn't considered normal commuting. TurboTax got me in so far over my head in trying to deduct my home office I decided it wasn't worth it. Good Luck!!

Answer 3

Keep it simple and focused on the revenue. While you are allowed to have expenses greater than your revenue, I would stay safe and perhaps expense 1 tank of gas for the day you travelled (if you did) to the client site. That is legitimate... expensing a year's worth of car repairs... that is inviting trouble with the IRS. Turbo Tax is just giving you standard questions... feel free to enter 0.

Answer 4

You can take the mileage rate of 44.5 cents per mile instead of trying to figure the portion of your total costs attributable to those jobs.

Answer 5

hi yes you need to do your schedule c but you don't have a lot of info..you made more than 600 so you have to file..I hope you kept good receipts!