Companies have until January 31st, 2017 to deliver your 1099-MISC. You may even receive it before then or a few weeks after, in the case they've secured an extension. Payable is the service helping deliver these tax forms to movers this year. We created this quick guide to help you better understand the 1099-MISC and what it means for your taxes.
See: What is a 1099 Form?
A 1099 form is used to report contractor earnings to the IRS. You only get a 1099 form after earning more than $600 with a company. If you’ve received a form, that means you’ve earned over $600 from them.
The most relevant box for you and your taxes is Box 7: Nonemployee compensation. On your 1099, this is what it will look like:
First, you will input the amount you’ve earned (as reported in Box 7 on your 1099) on the Schedule C. You use the Schedule C to determine your profit or loss. It's also where you claim any tax deductions (like the Standard Mileage Rate, health insurance premiums, business supplies, etc).
After that, you’ll take the amount in personal business profit determined by your Schedule C and plug it into a Schedule SE. The Schedule SE helps you calculate the percentage you will owe in self-employment tax. That percentage, in turn, you add on your 1040 form (the form most people fill out to report income).
No, the 1099 is for your records only. You’ll send them the Schedule C, Schedule SE and 1040.
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