Didn't get my 1099s filed on time.
jame...@gmail.com
1099s and I didn't realize that they had to be filed so early (dumb
mistake). Is there anything I can do or will I have to "eat it" and pay
taxes on that money myself? Also, if 1099s do not have to be filed for
income less than $600, how do I report it so that I do not have to pay
taxes on that money? Thanks.
Phil Marti
> This is my second year being self-employed and my first year to file
> 1099s and I didn't realize that they had to be filed so early (dumb
> mistake). Is there anything I can do or will I have to "eat it" and pay
> taxes on that money myself?
You're confused about something, but I'm not sure what it is. You have to
prepare and send 1099's to some people you pay in the course of your
business. You may receive 1099's from people who pay you. None of this
affects your Schedule C, which you prepare from your business records.
> Also, if 1099s do not have to be filed for
> income less than $600, how do I report it so that I do not have to pay
> taxes on that money?
The same as you do all your expenses: on the appropriate line of Schedule
C.
--
Phil Marti
Clarksburg, MD
matthew02
contracted out some of my labor this year as opposed to doing it all
myself. In this case, I need to send 1099s to those individuals? If so,
then is it to late to do so? Also, you said that I prepare my Schedule
C from my business records.. So maybe what I am confused about is that
my failure to send 1099s (on time, or at all) does not mean that I have
to pay taxes on that money? I just do my Schedule C and report what I
paid to others regardless? Thanks.
Phil Marti
>I have received 1099s both last year and this year. However, I
> contracted out some of my labor this year as opposed to doing it all
> myself. In this case, I need to send 1099s to those individuals?
Yes, if you paid an individual $600 or more.
> If so,
> then is it to late to do so?
No.
> Also, you said that I prepare my Schedule
> C from my business records.. So maybe what I am confused about is that
> my failure to send 1099s (on time, or at all) does not mean that I have
> to pay taxes on that money?
Correct.
> I just do my Schedule C and report what I
> paid to others regardless?
Correct again.
There is a penalty for filing your 1099's late, but it may not be asserted,
and if it is, you might be able to get it waived for reasonable cause. Do
go ahead and file the 1099's even though they're late. You can be sure IRS
will assert the penalty if they have to bring it to your attention.
It sounds to me like you're overdue for a session with an accountant who
can, in addition to instructing you in all your responsibilities, probably
give you some pointers that will save you money in the long run.
matthew02
amount of my tension. I very much aggree your assertion that I should
speak with an accountant. I think that my eternal effort to save money
(read cheapness) may have had the opposite effect this time. Lessons
learned. Thanks again for your help.