I rcvd a 1099 from doing a newspaper route. I have heard various things about how to claim it. I was told i can lump it into my total income and just pay that way. I also heard that I have to pay out the fica (social security and whatnot) and then that way I can deduct things like mileage. I'm not sure of the right way to do this. Can anyone help me?
2007-02-12 09:11:16 · 8 answers · asked by sgibson1127 1 in Business & Finance ➔ Taxes ➔ United States
1099's are separate from w2's eventhough they are combined to show your income. BTW, you can claim expenses if you itemize (with or without 1099s).
2007-02-12 09:15:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If wendy's 1099 was from self-employment income like yours is, then she got really bad advice from Jackson Hewitt. There are a lot of different types of 1099's, so maybe hers was something different.
You'll have to file a schedule c to show your 1099 income and any associated expenses, and a schedule SE to calculate self employment income with is social security and medicare.
Do NOT just lump it in with any W-2 income or you'll be getting a letter and a bill from the IRS.
2007-02-12 14:49:27 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You need to complete a schedule C and a schedule SE. The schedule C will be for reporting the income (use the exact $$ from the 1099 -- the IRS ties these out) and then deducting expenses like mileage on your car, supplies etc. And then from the net profit on your schedule C, you post that to the SE to pay self employments (a/k/a soc. sec. and medicare) taxes.
Do not lump anything, anywhere!
2007-02-12 10:45:01 · answer #3 · answered by LC 2 · 0⤊ 0⤋
Yes you have to claim the 1099. Anything over $400 there requires you to file. It's not an option.
2016-03-29 03:52:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
When you file your Form 1040, you will fill out Schedule C for self employed income. You will have to pay some social security and medicare tax plus income tax on the amount. You can deduct various things however, including miles of your personal car. You should consult an accountant for what you can and should deduct!
2007-02-12 09:18:12 · answer #5 · answered by ? 3 · 0⤊ 0⤋
This income goes on Schedule C. You can deduct a lot of self-employment expenses there including auto mileage. Net profit from this schedule goes to 1040 and Schedule SE to compute your FICA tax.
2007-02-12 09:15:59 · answer #6 · answered by spicertax 5 · 0⤊ 0⤋
I got a 1099 also and was told by a tax preparer at Jackson Hewitt that you just add it to your income. they should have taken taxes out already, if there was enough money. you can call the IRS for free information 1-800-829-1040
2007-02-12 09:15:55 · answer #7 · answered by wendy_da_goodlil_witch 7 · 0⤊ 2⤋
"other income" -- Sched. C
Did you have expenses (e.g., gas, mileage, etc)? subtract them from your income. You will have self employment tax of 15.3% on the net income
2007-02-12 09:15:44 · answer #8 · answered by Dizney 5 · 0⤊ 0⤋