Form 1099 misc questions?
Form 1099 misc questions?
I worked on 2010 as an independent contractor for 3 months doing DATA ENTRY on a warehouse close to the airport.
They send me a FORM 1099 MISC reporting me income on line 7, my questions is what kind of expensive do I put?, can I deduct gasoline, miles, cell phones, car insurance? or which one?
The other questions is do I fill the Schedule C or C-ez, my expenses are less than $5,000
Thanks for any answer
Thanks to all of you
Let me explain that on the time that I worked for that company I signed a contract agreement as an independent contractor
The accountant of the company told me on that moment that I can put all my expensive when I do my taxes at the end of the year, I worked for three months but this work was a little far from my house
That's why I ask my questions on yahoo.answer
Thanks
Answers:
MadMan: You most likely cannot deduct anything. The cost of commuting is never deductable. How did you use your cell phone as part of this work?
2011-03-23 10:48:32
mrreliable3599: You can't deduct any expenses for getting to and from work. Commuting expenses are not deductible.
Unless you were using your own equipment, it's hard to think of any ordinary and necessary business expenses you can write off.
Don't forget to file Schedule SE to pay self-employment tax. You'll owe approximately 13% in self-employment tax, in addition to any income tax due on the earnings.
2011-03-23 10:49:53
Chosen Answer
Chas: You report on Schedule C and SE. Commuting is not deductible so you probably have no expenses that are deductible.
2011-03-23 10:54:54
Bash Limpbutt's Oozing Cyst?: None of the items you listed are likely business expenses. Commuting is never deductible whether you are self-employed or are an employee. Only separately billed business long-distance phone calls would be deductible on your personal cell phone and since nobody bills LD any more there's nothing there either.
The question that you should be asking is, "Was I an independent contractor or was I an employee?" Doing data entry at a warehouse certainly sounds like you were someone's employee, not self-employed. To deal with that, file a Form SS-8 http://www.irs.gov/pub/irs-pdf/fss8.pdf with the IRS to get a formal ruling on your status.
While that is pending, file a Form 1040 return showing your earnings on line 7 as if you had received a W-2. Attach a Form 8919 http://www.irs.gov/pub/irs-pdf/f8919.pdf to calculate your share of the FICA taxes. Attach payment in full and file by April 18th to avoid late filing penalties and late payment penalties and interest. If you owe more than $1,000 the IRS may impose an underpayment penalty but they will bill you for that and give you 30 days to pay it without additional penalty.
2011-03-23 10:56:15
tro: commuting which is driving to and from work is not deductible
the cell phone would have to be exclusive to the business(ie. a 2nd phone)
if you were able to deduct any mileage at all, and that would be business trips other than commuting the car insurance is included in the mileage rate
and yes, the Sch CEZ would probably be your choice
2011-03-23 11:30:27
kelby7670: I believe all the other answers are wrong. If your business is based in your home ALL travel is an expense. You don't do any commuting because you are at your place of business when you wake up. If you do have an office somewhere you couldn't deduct any travel to that office but you CAN deduct the expense of traveling to the warehouse. Schedule C-EZ has a travel and auto expense worksheet on it.
2011-03-23 14:59:52