Before I start-in on the answer to this question, please understand this article only pertains to individuals who use their personal vehicle for self-employed, freelance, or 1099 contract work. Any work you do for an employer from whom you receive a form w-2 does not apply; even if you are the owner. If you (as […]
So, You Want to Claim a Certain Someone As Your Dependent?
Everyone is looking for a way to lower their tax bill and maybe even get a little refund back. I see lots of people attempting to be really… “creative” in coming up with a few dependents to help them achieve this goal. Before you get too carried away with how easy it can be to […]
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, […]