If I recieved a 1099 misc for catering work do I need to file a Schedule C?

Answer 1

In lieu of schedule C, on form 1040, you can list the 1099 MISC as Other Income on line 21, but you must pay a Self-Employed tax, 1040 schedule SE, entered on 1040 line 58. You can get a 1040 Schedule SE at IRS.GOV.

Schedule C will allow you to list all your expenses and reduce the the 1099 MISC to your net profit. You only pay Self-Employed tax on the net profit. So if you have good records of the expenses incurred for the work done, you can greatly reduce your tax liability.

If your 1099 MISC is a significant amount of money, I suggest you see a Tax Pro, who can help you document your expenses and properly calculate the SE tax. Also, the Tax Pro can assist you in estimating reserves you should earmark for 1099 MISC taxes in 2007.

Answer 2

Yes you do and you get to pay self-employment tax AND a penalty if you owe more than $1000 in tax. Many employers use the 1099 to avoid matching your social security and medicare taxes. If you are going to continue catering work, you should have more taxes taken out of your pay from your "day job", provided you have one or send estimated payments to the IRS to avoid the penalty.

Good Luck!
RB

Answer 3

Yes

Answer 4

Yes and you can get a copy from www.irsforms.com