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New to Direct Sales? Questions About 1099s Answered

In summary, a 1099 form is a tax form used to report income from sources other than an employer, and it is necessary for direct sales consultants to report their income to the IRS. The form can be obtained from the company you are working with, and it is important to pay taxes on your direct sales income as it is considered self-employment income. Deductions can be made for business expenses, but it is important to keep detailed records and consult a tax professional. If you do not receive a 1099 form from the company, you are still responsible for reporting your income using your own records.
M
melaniepc
311
since I am new to direct sales, I have a question. I will get a 1099 in January right? Do you have to sell so much in direct sales to have to file the 1099 or is it any amount you make?
 
Re: 1099You will get the 1099 as long as you earned at least $600 in comission/free products
(via promotions, not shows). hth!
 
  • Thread starter
  • #3
Re: 1099alright thanks.
 

Related to New to Direct Sales? Questions About 1099s Answered

1. What is a 1099 form and why do I need one?

A 1099 form is a tax form used to report income received from sources other than an employer. As a direct sales consultant, you will likely receive income from your sales and commissions, which must be reported to the IRS. This is why you need a 1099 form.

2. How do I obtain a 1099 form?

You can obtain a 1099 form from the company you are working with. They are responsible for reporting your income to the IRS and should provide you with a 1099 form at the end of the year. If you do not receive one, you can contact the company to request it.

3. Do I need to pay taxes on my direct sales income?

Yes, direct sales income is considered self-employment income and is subject to taxes. You will need to pay self-employment tax, which includes Social Security and Medicare taxes, as well as income tax on your earnings. It is important to keep track of your income and expenses throughout the year to accurately report and pay your taxes.

4. Can I deduct expenses related to my direct sales business?

Yes, you can deduct expenses related to your direct sales business, such as advertising, supplies, and travel expenses. These deductions can help reduce your taxable income and potentially lower your tax liability. However, it is important to keep detailed records and consult a tax professional to ensure you are deducting expenses correctly.

5. What happens if I do not receive a 1099 form from the company?

If you do not receive a 1099 form from the company, you are still responsible for reporting your income to the IRS. You can use your own records, such as bank statements or sales reports, to accurately report your earnings. It is important to keep track of your income and expenses throughout the year in case you do not receive a 1099 form.

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