- Days left
You've gotten a form 1099-MISC in the mail, and you're confused because you don't own a business and you don't know what to do with the information on the 1099. You don't actually have to have a "business" in order to receive a legitimate 1099 from another party. If you do work as a subcontractor (not an employee), you will probably get a 1099 for the money you are paid.

You should report the income from the 1099 on Schedule C or Schedule C-EZ. You can also deduct expenses directly related to earning this income. If you have net earnings (income greater than expenses) of $400 or more, you will have to pay self-employment taxes, and should fill out Schedule SE.

Another note: Any income you receive for work should be reported on your taxes. So if you do work as a subcontractor and receive money, but don't get a 1099, you're still required to report that income on your tax return.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

TurboTax Articles

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

Add a Comment

*0 / 3000 Character Maximum