Tax Questions, please help! Standard deduction, 1099, etc.?
Tax Questions, please help! Standard deduction, 1099, etc.?
1) I work full time and get a W2. I planned on filing 1040a or 1040 (I don't remember which?). But, I also did some contract work for small amounts and will recieve some 1099 forms (what are these?!? and if I don't get one, then what?). For those contract jobs, I had some expenses (and have reciepts). Do I just deduct the expenses from amount paid and put that on the 1099???
Or must I then make itemized deductions and sacrifice the standard deduction on all earnings total?
I'm so confused.
Can someone put this in LAYMANS TERMS, like really dumb it down for me.
I'm speaking Japanese to myself.
Which ---- C or CEZ, and why are they different???
Answers:
Ms. Angel..: For the 1099 earnings you will need to report it on Sch C or C-EZ, visit IRS website www.irs.gov for self employed information.
You should receive the Form 1099 on or after Feb 15th. If you don't receive them then you can report the amount you know you received, if you under report or over report IRS will send you a CP2000 in about 18 months after filing your tax return.
visit IRS website www.irs.gov
2009-01-23 06:41:29
2009-01-23 06:41:29
Chosen Answer
Judy1: If you have contract (1099) income you'll have to file form 1040, not 1040A. You'll report your 1099 income (show the whole income, and expenses separately) and allowable business related expenses on a schedule C or C-EZ, and also fill out a schedule SE to calculate your self-employment tax (social security and medicare) for the net 1099 income (amount on the 1099 minus those business expenses). The numbers from the bottom of the two schedules will transfer to your form 1040, and your W-2 income goes on that same 1040. You don't have to itemize on schedule A, you can still take the standard deduction. - itemizing is for personal expenses; your business expenses go on the C or C-EZ.
2009-01-23 07:17:09
Judy1: If you have contract (1099) income you'll have to file form 1040, not 1040A. You'll report your 1099 income (show the whole income, and expenses separately) and allowable business related expenses on a schedule C or C-EZ, and also fill out a schedule SE to calculate your self-employment tax (social security and medicare) for the net 1099 income (amount on the 1099 minus those business expenses). The numbers from the bottom of the two schedules will transfer to your form 1040, and your W-2 income goes on that same 1040. You don't have to itemize on schedule A, you can still take the standard deduction. - itemizing is for personal expenses; your business expenses go on the C or C-EZ.
2009-01-23 07:17:09
fordman: just go to a tax pro they will answer all your questions
2009-01-23 10:27:27
2009-01-23 10:27:27