Did You Pay Anyone More Than $600 in 2018? — Get your 1099-misc filed by 1/31

I’ve beat this topic to death in years past, so I won’t go into all the intricate details in this blog. So please… before you ask questions about Box 3 vs Box 7, please take time to read through questions from all of the *wishful thinking* people who have gone before you. You can find […]

1099-Misc forms Must Be Filed by January 31st – Fines have Increased

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 […]

Sole proprietor and Independent Contractors Prepare for Tax Season

As a sole proprietor/independent contractor, your income is the most heavily taxed of all wage earners. You will be assessed a federal tax, state tax, local tax, and a self-employment tax. The best way  to lower your tax liability (the amount of tax dollars you owe to these entities) is for you to take time […]

When Businesses Barter Is it Taxable Income?

Due to our slow moving economy, we’ve seen an increase in businesses bartering with one another. Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. – IRS Topic 420 So, is this exchange considered taxable […]

1099-Misc: Other Income vs. Nonemployee Compensation

One of my small business clients received a form 1099-misc from one of her customers for whom she’d performed a business service. The customer unknowingly reported the income using box 3: “Other Income” when she should have reported it in box 7: “Nonemployee Compensation”. So what’s the difference? One is for payment for services performed, […]