My dad recieves a 1099 (he is a contractor), and is unsure if he has to file a 1040, and I have to know because I have to do an appliaction for financial aid (about to go to college), and it asks all kinds of questions about the 1040 form that my dad doesn't think he has to do.
2007-03-25 14:34:10 · 6 answers · asked by Kyle C 1 in Business & Finance ➔ Taxes ➔ United States
yeah, your dad has to file taxes using 1040, but he can itemize his deductions so as to cover the cost of doing business, I mean his business expenses.
2007-03-27 02:59:28 · answer #1 · answered by Ola 4 · 0⤊ 0⤋
If your dad is not incorporated, i.e., a C Corp, he would have to file a 1040 to report the 1099's he received. He would report them on a Sch C that is part of the 1040. But he would also be able to report all the expenses that he had as a contractor; materials used, labor hired, tools & equipment purchased, mileage expenses or actual expenses for his vehicle driving to different jobs. If he does not file a 1040, and has received 1099's, the IRS will also be receiving those 1099's, and would prepare a return for him, with only the income from the 1099's and no expenses. In addition to the 1099's, your dad would need to report other income he's received on the 1040, interest, dividends, rental income, etc.
2007-03-25 16:39:46 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Yes, 1099 income is fully reportable. I'm not sure where he gets the idea that it isn't reportable but it most certainly is.
If he has more than $400 in self-employment income he has to pay SE tax on it as well. The only time he would not have to report it at all would be if it was less than $400 and was also the ONLY income that he had.
2007-03-25 15:02:13 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
The earnings and linked deductible costs will bypass on a time table C or C-EZ. The sort from the backside of which will bypass on your 1040 on line 12, enterprise earnings or loss. that comparable sort will bypass onto a time table SE to calculate your self-employment tax (social safety and medicare), which will then bypass on the Self-Employment Tax line of the 1040 interior the "different taxes" area.
2016-12-19 13:53:04 · answer #4 · answered by ? 4 · 0⤊ 0⤋
if dad is a contractor and works for various companies he needs to get a cpa to keep his tax finances in line, or he will, in the long term get into trouble with the irs and the state tax dept..
he needs a tax pro and you need a school counselor to apply for college. a 1040 for dad will not work for him if he is a independent contractor. good luck.
2007-03-25 14:54:43 · answer #5 · answered by barrbou214 6 · 0⤊ 2⤋
If your earnings were $400.00 or more the answer is Yes you must file.
2007-03-25 14:45:23 · answer #6 · answered by joe c 1 · 1⤊ 1⤋