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4 answers

If the income on the 1099Misc is in box 7, then you report the income on a Schedule CEZ or Schedule C. (read the instructions for CEZ to see if you qualify)
You can deduct any expense you had connected with earning that money. Then ,, the profit shown on Schedule C or CEZ goes on line 12 of Form 1040 and if more than $400. it also goes to Schedule Se for self-employment tax (social security). Don't forget to deduct 1/2 of your self-employment tax from Schedule SE on line 27 of form 1040.

2007-04-16 03:03:21 · answer #1 · answered by Jo Blo 6 · 1 0

You add it to your gross income when completing your tax return. You would add it to all of your other income for the year (found in Box 1 [wages, tips and other compensation]. of any income statemet like a W-2 or a 1099).

The only difference between a W-2 and a 1099 (as far as your income tax return is concerned) is that there probably isn't anything withheld (boxes 4, 6, 10 on a W-2). This will increase your AGI without increasing your payment, likely resulting in a tax payment required rather than a return.

2007-04-16 09:53:34 · answer #2 · answered by robin0408 4 · 0 1

Income on a schedule C or C-EZ, then a schedule SE to calculate self-employment tax, then the numbers from the bottom of the two schedules go on a form 1040.

2007-04-16 11:54:28 · answer #3 · answered by Judy 7 · 1 0

Getting paid in cash is fine... but you need to have reciepts and ledgers keeping track of payments, your spending, etc. You can fill out your 1099 with those.

2007-04-16 09:49:47 · answer #4 · answered by Just A Newbie 3 · 0 2

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