1099-MISC and Small Business Returns 1. What you need Download: // Email.
-
Upload
keyshawn-perkins -
Category
Documents
-
view
215 -
download
0
Transcript of 1099-MISC and Small Business Returns 1. What you need Download: // Email.
![Page 1: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/1.jpg)
1099-MISC and Small Business Returns
1
![Page 2: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/2.jpg)
What you need
• Download: http://www.irs.gov/pub/irs-pdf/p4012.pdf• Email for hard copy: [email protected]
2
![Page 3: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/3.jpg)
What to Expect• Working part-time for an employer outside the
home.o 1099-MISC, line 7
• Working Part-time for an employer in your own home.o 1099-MISC, line 7
• Small business owner: In-home daycare, Service person, Home delivery newspaper carrier, etc.o Cash receipts and/or1099-MISC, line7
3
![Page 4: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/4.jpg)
1099-MISC• Box 3 and 7• Expenses
o Mileage• Commuting vs. business travel
o Necessary tools or supplies
• Link to Schedules C and C-EZ• Self employment tax
4
![Page 5: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/5.jpg)
Out of Scope for VITA• Expenses exceeding $10,000• Business use of home• Vehicle expenses reported as actual expenses• Depreciation• Net losses• See Publication 4012 for full listing
5
![Page 6: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/6.jpg)
Small Business Scenario 1
Advanced Topic• Anna is employed as an editor, she works from
home and was paid on a 1099-MISC• She kept a record of all expenses:
6
Expense Item Cost
Printer Paper $ 525.00
Printer Ink $ 1,200.00
Business Cell Phone $ 350.00
Printer $ 300.00
Computer $ 1,500.00
Total Dollars $ 3,875.00
Miles while making deliveries
234 Miles
![Page 7: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/7.jpg)
7
![Page 8: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/8.jpg)
TaxWise
Tax Preparation Software
8
![Page 9: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/9.jpg)
9
![Page 10: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/10.jpg)
Linking to a Scratch Pad
10
![Page 11: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/11.jpg)
11
![Page 12: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/12.jpg)
12
![Page 13: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/13.jpg)
Everything Transfers to the 1040
13
![Page 14: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/14.jpg)
14
![Page 15: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/15.jpg)
15
![Page 16: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/16.jpg)
Ohio Self-employment Tax Credit
• 50% self-employment tax credit on the Ohio tax return.
• Line 41 on page 3 of IT-1040• 1099-MISC qualifies• Complete Ohio IT SBD form by hand• Enter the credit amount as a deduction to income
and on line 41 of page 3 OH IR-1040.• Keep the IT SBD for your records
16
![Page 17: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/17.jpg)
17
8,869
8,869
627
627
![Page 18: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/18.jpg)
Ohio SBD Continued
18
8,242
8,2421 0
8,242250,000
4,121
![Page 19: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/19.jpg)
Entering the Deduction into
TaxWise
19
![Page 20: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/20.jpg)
Scenario 2• Raoul is a plumber who has his own small business and
occasionally works for a plumber friend who bills the client all charges and pays Raoul on a 1099-MISC.
• In his own business he bills the customer for the service call, labor and all the parts he uses to do the job.
• He keeps good records on his mileage to and from the customer, as well as all of his expenses.
• In general Raoul charges all his expenses for tools and supplies to his business. However, if the part time job requires a special tool he will charge it to the 1099-MISC job.
• Raoul earned $27,500 in his business, and received a1099-MISC from his plumber friend for $6,800.
20
![Page 21: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/21.jpg)
Income and Expenses• Raoul earned $27,500 in his business, and received a1099-MISC from his
plumber friend for $6,800.
21
Billing Software $ 147
Paper, ink, other office supplies $ 222
Expendable supplies: sealer, solder, tape, etc.
$ 207
Pipe threader $ 500
Pipe cutter $ 325
New socket set $ 175
Soldering equipment set $ 130
Heavy duty pipe wrench – 1099-MISC job $ 137
Miles to the business 7,500
Miles working with his friend 980
![Page 22: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/22.jpg)
Publication 17Figure 26-B
When are transportation expenses deductible?
22
![Page 23: 1099-MISC and Small Business Returns 1. What you need Download: // Email.](https://reader036.fdocuments.us/reader036/viewer/2022062712/56649c815503460f94938ab5/html5/thumbnails/23.jpg)
Small Business Scenario 3
• LaDonna is an unlicensed at home daycare provider. She earned $8,900 last year.
• She opens her entire house and backyard to the daycare children.
• Every Monday, she takes the children to the zoo and has tracked her mileage and other expenses.
23
Food $ 1,200
Games, Toys, Crafts $ 650
Cleaning Supplies $ 240
Tennis Shoes (Only worn while working)
$ 90
Total Dollars $ 2,180
Mileage 320 Miles