I am recently receiving 1099 from my boss as a medical biller. I don't have a car and I didn't register for a corporation. I would like to know what can I used for deduction under 1099? And what percentage they can used for deduction? How about rent and food? Thank you~^^~
2007-08-14 06:04:26 · 4 answers · asked by Joyce ^^ 1 in Business & Finance ➔ Taxes ➔ United States
I have attached a link to a guide for self-employed individuals (which you are) it has various expenses that you can claim. I can tell you though, as far as food goes, if you are talking about a regular lunch, that's not deductible, after all, you do have to eat. But if you are taking clients out on a business lunch/dinner/breakfast, that is deductible, but only 50%.
2007-08-14 06:20:22 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Any deduction that you can take under the w2 can also be taken under a 1099. Keep in mind that you will be paying 100% of your social security taxes.From these SS taxes there are no deductions. Good Luck
2007-08-14 13:11:06 · answer #2 · answered by walt631 4 · 0⤊ 0⤋
As an independant contractor you will file IRS Schedule C to report any earnings over $400. You may list as deductions any qualified expenses as shown on Scedule C like:
the computer you use to do the billing
the internet service you pay for to receive or upload the billing
a fax line (if used for business)
itemized long distance calls made for business
business postage and shipping costs
computer paper & office supplies
any repairs or service done to your computer or office equipment
any office furniture you had to buy (will be depreciated- see IRS form 4562 for listed property)
check out the IRS website for all the scoop. And KEEP your receipts!
2007-08-14 13:21:40 · answer #3 · answered by upside down 4 · 0⤊ 0⤋
Food - no. Rent - maybe part of it, if you work at home and qualify for a home office deduction.
2007-08-14 13:32:57 · answer #4 · answered by Judy 7 · 0⤊ 0⤋