Contractor Taxes/ NO 1099?

Question

So, I'm a freelance employee. An my last client didn't ask me to fill out a 1099--he just paid my invoice in full. When it comes to taxes next year, I assume I'll pay both taxes and SS... but how do I figure that out? Shouldn't the client offer a 1099, or is there a way to do this without? Other helpful info--I'm not an LLC or any other legal company. Just a person doing some stuff. ;)

Answer 1

These circumstances can cause you a number of problems. You must have accurate records to show what you income was and report all of your income. In some cases the client files his returns late including a number of 1099 MISCs for people like you. You may have already reported the income but did not have a 1099 to identify the source. The IRS does a comparison of your return and reported 1099s about a year later and discovered that you did not report the income from a 1099. They will send you a IRS Form CP2000 claiming under-reporting of income. Only your records will clearly show that you reported the income on the original return.
Welcome to the world of small business!!

Answer 2

If it was less than $600 they are not required to provide a 1099. Even if it is over $600, they would not be required to provide a 1099 until the end of January following the year they paid you. If they do not provide you a 1099, you just have to take it on yourself to report the money on your personal/business taxes depending on how you file. Most tax software will ask if you received taxable income for which you did not receive a 1099 or W-2. If you use a tax preparer, just let them know of the amount and they can include it at the appropriate place on your form.

Answer 3

The client won't necessarity send you a 1099 although he might. If he didn't have you fill out a W-9, it's very unlikely, since he wouldn't have the information to do so.

You should be keeping detailed records of your income and associated expenses. You'll use those records to prepare your return next year. Any 1099's you get from clients would just be a double-check on your records.

Answer 4

You are required BY LAW to keep accurate records of your business income and expenses.

Your client wouldn't ask you to "fill out a 1099", they'd send you one if they're following the law.

Even if they don't send a 1099, your records will suffice to prove your income and expenses. You do NOT need a Form 1099 to file a tax return!

You file Schedule C or C-EZ with your Form 1040 tax return to account for the business income and expenses. If the net profit exceeds $400 for the year, you attach Schedule SE to calculate the Self Employment tax -- Social Security and Medicare -- at 15.3% of the net profit.

If you expect your tax bill for the year to exceed $1,000, you must make quarterly estimated tax payments using Form 1040ES. Download the package from the IRS website. It includes worksheets to help you estimate your tax liability and calculate the required payments. You're already late on the first payment; it was due on April 17th.

Answer 5

It sounds as if you are self-employed providing some kind of service. You are in business for yourself and ARE NOT an EMPLOYEE. As such you are required to keep an organized record of income (receipts). And if you want to take any deductions against that income you need to kind a record of expenses. You will probably need to file a schedule 'C' and a Schedule 'SE' along with your Federal Income tax form 1040. If this business is going to continue you should contact a tax preparer, CPA etc.

Answer 6

You are required to report your income whether or not they send you a 1099.

The easiest thing to do would be to start a spreadsheet and track all of your income and expenses yourself.