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Yes, you can claim those expenses! Even if it makes your PC effort show a net loss.higoobs said:does anyone know what happens when you made below $600 but have spent several hundreds $ on supplies, mileage, groceries, advertising, etc... Can you still claim these items even though the earnings were not great for the year?
Ugh, no offense, but I think H&R Block would be even worse than the CPA I hired. They hire people off the street to plug numbers into their software. You could just as well use a PC tax program and go through the answers yourself.Be careful on claiming home office expense. My CPA did say that is what gets a lot of people audited.SherryLynn said:I'm in the same boat and unsure myself. I am spending the money this year to have my taxes done professionally. I may do the same next year as I plan to write off more. I have been told you can write off your home office and part of your phone bills, etc. I'm not doing that this year as I just started and did not earn much. Next year will be a different story. We get a discount at H&R Block. It may be worth your money to have it done there this year instead of doing it yourself. Good luck.
SherryLynn said:.... I just need to be walked through it the first time to see about deductions then I will be ok most likely. .....
Thanks for the info! I only earned 117 last yr & my income info under the W2 link on the PC site is not on a 1099 misc. I always use turbo tax but somehow they didn't carry over ANY of my past info & I can't remember how I did it last year. Can you tell me, since I can't enter it under 1099 misc, do I have to go under business income? Turbo wants me to upgrade to Home & Business & it's just not worth it! My standard deduction is higher than my mortgage taxes/int & I'm trying to keep this simple.clongshore said:I'm a consultant and IRS Revenue Agent. Many things ppl are saying are true. Generally if you show a profit in 3 out of 5 years, we won't challenge a business, but if we're suspicious that people aren't claiming deductions just to show a profit, then you could get in trouble there too. As far as home offices go, they have to be used EXCLUSIVELY for your business or you can't claim it. Generally a reasonable amount for phone would be okay, but it depends on what you can show is business use of the phone. I personally don't argue with somewhere between 25% to 40% for the business line, nothing for kids, spouses, etc. --- Side note, don't worry I'm not turning anybody in. We tend to be small fish in a very big pond, and I have enough work
Turbo Tax Home & Business is what we've used for 16 years. Schedule C IS the key. We deduct the "other income" items as business expenses. They are either tools (new products) or publicity (logo items). I don't know what categories they end up under when my husband actually plugs them into the program, but I hope this helps a bit.E R said:Newbie, bumping this thread.My wife started as an Independent Consultant last year and did fairly well in the few months since she started.I do our taxes, and am perplexed that both Box 3 (Other income) and Box 7 (Nonemployee compensation) are filled in on her 1099-Misc. The Other income was the start-up kit, PC bucks to be used later, and other non-commission stuff.TaxAct doesn't care if both boxes are entered, but TurboTax won't let both boxes be entered, and says two separated lines should be entered.Self-employment tax changes if Box 3 figures do not go on Schedule C, and the IRS says Other income is not used to calculate self-employment tax.I'm leaning toward putting it all to Schedule C, but can find no good answers.Thank you!
I'm a newbie but have done pretty well (at least I think pretty well) since I started in January. I haven't really put any money aside to accommodate for the 1099 and I'm freaking out some. Any suggestions for how I can determine maybe how much money to put aside in these last 6 months. I'm used to getting a refund and don't want to lose that refund or end up paying.clongshore said:I'm a consultant and IRS Revenue Agent. Many things ppl are saying are true. Generally if you show a profit in 3 out of 5 years, we won't challenge a business, but if we're suspicious that people aren't claiming deductions just to show a profit, then you could get in trouble there too. As far as home offices go, they have to be used EXCLUSIVELY for your business or you can't claim it. Generally a reasonable amount for phone would be okay, but it depends on what you can show is business use of the phone. I personally don't argue with somewhere between 25% to 40% for the business line, nothing for kids, spouses, etc. --- Side note, don't worry I'm not turning anybody in. We tend to be small fish in a very big pond, and I have enough work
You can make 'estimated tax' payments at irs.govWe have been making payments of 15% of sales for each quarter, this year.If you have other income, and withholding has been taken out, you likely won't HAVE to make estimated payments, as I believe you only would be penalized if you paid less than 90% of what your tax liability is throughout the year.We also have made estimated tax payments of 15% to our State as well.I don't know if you can start making payments mid-year (there's a payment schedule on irs.gov), but at the very least, you can start setting aside a percentage of your sales now.Paula Miller-Knipple said:I'm a newbie but have done pretty well (at least I think pretty well) since I started in January. I haven't really put any money aside to accommodate for the 1099 and I'm freaking out some. Any suggestions for how I can determine maybe how much money to put aside in these last 6 months. I'm used to getting a refund and don't want to lose that refund or end up paying.
A 1099 form is a tax form used to report income that is not from an employer. This form is important because it helps the IRS keep track of all income earned by individuals and businesses, and ensures that taxes are paid on that income.
If you did not receive a 1099 form for 2013, it means that you did not earn any income that year that required reporting on a 1099 form. It is possible that your income fell below the threshold for reporting, or that you received income from sources that do not require a 1099 form.
Yes, you are required to report all income earned in a tax year, regardless of whether or not you received a 1099 form. The 1099 form is simply a way for the IRS to track and verify your income, but it is ultimately your responsibility to report all earnings on your tax return.
If you fail to report income on your taxes, you may face penalties and interest from the IRS. It is important to accurately report all income to avoid any potential consequences.
If you received income in 2013 that should have been reported on a 1099 form but did not receive one, you can still file a 1099 form for that income. You should contact the payer and request a copy of the form, or you can report the income on your tax return using the appropriate form.