Happy Tax Filing Season to my Small Business Owners,
This is just a friendly reminder that if you paid any person, vendor, or business order $600 or more throughout the entire year of 2016 for services performed, you are legally required to give them a 1099-misc form by January 31st, 2017.
The IRS is cracking down on this filing requirement, and have increased the fines for missing the filing date. You can read more about it on this webpage: http://www.hhcpa.com/blogs/income-tax-accountants-cpa/1099-filing-penalties/.
I’ve used www.wagefiling.com to file 1099-misc for my clients for many years. You can used them to file for yourself, or contact me for service.
Taking care of business,
Michelle Walker-Wade
HI, I have a question about filing with a 1099. I filled out a W-9 with a company. I only received $745 for commission (selling an item). Do I report this in Box 7 or Box 3? Also, since its classifying me as an independent contractor, the turbo tax is asking me to file state tax for FL for owning a business. I actually don’t. It was just a one time transaction and I am not interested in pursuing being a contractor. Do I have to file business taxes for a business that I don’t have, don’t have expenses for in that state?
Hi Cynthia. That would be Box 7. According to the IRS definition that transaction makes you “self employed”. 🙂
Thank you. It complicates my taxes since I have to now file also for business tax, even though I don’t own any business. Is this correct?
If you were planning to continue doing that type of business transaction, most likely, Yes. If not, then no. You should be fine.
Hi Michelle,
I am currently working with a company who “prefers” to pay me via 1099-Misc. They entered my income in Box 3. this is my 2nd year with them (I know. I need to find a new company to work for :-/) Is it possible that I can start collecting and reporting my expenses and fill out Schedule C for 2017? I do a lot of driving from one site to another.
Best,
Cathy
Hi Caffy,
On the 1099-misc, line 3 “other income” is not connected to any other tax form that can be used to write off business expenses, but line 7 “non-employee compensation” is. Your employer needs to fix that asap.
Regarding your driving expenses, please carefully read my blog on Mileage and Vehicle Expenses. The IRS likes to catch people slipping up here.
https://mywalktax.wordpress.com/2015/03/31/does-the-irs-really-expect-detailed-driving-records-for-my-automobile-expense-deduction/