Hi there. I am going through Turbo Tax and am getting more confused. I had three jobs last year: two with standard W2’s and one with 1099 Misc income as I am an Independent contractor for them. I have a good amount of business expenses related to the 1099 income (k out of 12,500 income) Do I need to fill out a schedule C? I don’t have an LLC or anything of that nature. Not sure where to put these deductions. I originally put them with personal but maybe they should go directly with the business income? They keep asking me what basis. Cash, actual, etc. I am out of my league here! Sorry if this seems confusing; I remember why I hated accounting in college. thanks to anyone in advance!

Read this before you answer.

•Medicare cuts to hospitals begin (long‐term care (7/1/09) and inpatient and
rehabilitation facilities (FY10))
•Medicare cuts to inpatient psych hospitals (7/1/10)
•Medicare Advantage cuts begin
•No longer allowed to use FSA, HSA, HRA, Archer MSA distributions for over‐thecounter
medicines
•Medicare cuts to home health begin
•Wealthier seniors (k/0k) begin paying higher Part D premiums (not indexed
for inflation in Parts B/D)
•Medicare reimbursement cuts when seniors use diagnostic imaging like MRIs, CT
scans, etc.
•Medicare cuts begin to ambulance services, ASCs, diagnostic labs, and durable
medical equipment
•Prohibition on Medicare payments to new physician‐owned hospitals
•Seniors prohibited from purchasing power wheelchairs unless they first rent for 13
Months
•New Medicare cuts to long‐term care hospitals begin (7/1/11)
•Additional Medicare cuts to hospitals and cuts to nursing homes and inpatient
rehab facilities begin (FY12)
•New tax on all private health insurance policies to pay for comp. eff. research (plan
years beginning FY12)
•Medicare cuts to dialysis treatment begins
•New Medicare cuts to inpatient psych hospitals (7/1/12)
•Medicare cuts to hospice begin (FY13)
•Increase Medicare wage tax by 0.9% and impose a new 3.8% tax on unearned , nonactive
business income for those earning over 0k/0k (not indexed to inflation)
•Eliminate deduction for Part D retiree drug subsidy employers receive
•Impose 2.3% excise tax on medical devices
•Medicare cuts to hospitals who treat low‐income seniors begin
•More Medicare cuts to home health begin
•Government board (IPAB) begins submitting proposals to cut Medicare
•More Medicare cuts to home health begin

Day in, day out, for eternity, they need to file taxes for me:

Married filing jointly, 2 kids
One of us owns a small business
Income in 2 states (one being New York)
Home office deductions
Meals and travel expenses related to small business
Capital gains realized from stock sales
401k distribution from an old employer who corrected some math

They need to do all of this without the benefit of a tax professional or software to help. Just the IRS and it’s lovely forms and publications.

After spending a weekend doing our taxes – WITH help – I am certain this would be a special version of Hell which would make politicians wonder why they have created this crazy complicated monster.
It was both created and has evolved.

Every little stupid step and extra hoop is someone’s election promise brought to life.

Hi everyone! Thanks in advance for even reading my question. And if you have any input it would be much appreciated!

So I have already filed my taxes! Yeah! But…I just received another 1099Misc in the mail (Isn’t it way too late for that, legally?) representing about 5 in income. What to do!?

I am an actor and so receive, like many other professions, both W2s and 1099s. While doing my taxes this year I had all of my 1099s entered and I realized that that 5 was not accounted for. So I entered that income, without having received the 1099misc yet, in some field (I used Turbo Tax) called "other income" or "additional income" that applied it towards my profit from business/business income (where the other 1099misc were applied to). Then a week later I receive the 1099misc!! So annoying!

SO….I did report the income. But do I need to amend my taxes and report it under the 1099misc and take it out of the "other income" column? It will change absolutely nothing on the bottom line.

As mentioned I am an actor. I don’t make much money so I am using the Qualified Performing Artist deductions and other work related deductions. I assume that that makes me a larger target for audit and I dread that like everyone does. So I don’t want to become a larger target!

Thanks everyone!!
c.e.h.
Thanks guys for all the info…heres the thing. I DID include the income in question on my schedule C-EZ. It was added to line 1 (Gross receipts) with the totals from the 1099misc i did enter. And so it was included in the net profit on my schedule SE when determining my self employment tax. I did not add it to line 21 of my 1040.

So the question stands, knowing this. Since I did pay taxes on it, do I still need to amend my taxes putting that income with the 1099misc even though the totals/bottom line would not change?

You guys are great! Thank you!
Thanks JVTM! That would be very helpful!!

Yes we are in the same boat. Everything was claimed in the right place, just less the 1099 form itself. Anyone else have any input?

I have had a very part-time photography business for the last six years. I’ve had a NOL every year because the income from the business is less than the amount I spend on equipment for the business. This year I’m having to reclassify my business as a hobby because it has not had a profit in five years. I’m not filing Schedule A Itemized deductions because my allowable deduction is limited to business income amount which was 0 which is much less than the standard deduction of 50. I’ve listed the type & amount of income from photography on line 21 of form 1040. Am I considered self-employed, do I need to fill out Schedule SE self-employment tax form?
Charles, Thanks, you answered a previous question of mine too.
Robyn, it’s comforting to have the advice of an expert. Thank you!
Bob, I have no mortgage or property taxes & I made less than K in 2008. I filled out a Schedule A & my total itemized deduction is 6 because of the 2% limit. In previous years I filed Schedule C & Form 4562. I would usually Section 179 anything that cost less than 0 & depreciate anything that cost over 0. I purchased over K worth of equipment in 2008. Now that I have most of the equipment that a professional photographer needs, I must classify my business as a hobby. It’s disappointing but now I know I need to work harder at making a profit if I’m gonna say I have a Photography Business. Thanks for your answer.

He prefers the optional standard deduction. For the taxable year 2006, below are additional data:

Gross business income 1, 500, 000
Gross compensation income 600, 000
Itemized Deductions 500, 000
Premiums paid on health ins. 20, 000
Prizes won in a billiard tournament 100, 000

What is the taxable income?
What is the tax due?

I currently live in a condo. My fiance and I are buying a new home. Our combined AGI along with my sole proprietorship business income is about 200k. We both had to pay about 2.5k this year to the feds despite my prop tax/intest deductions. Our new home will have higher prop taxes and interest than the condo.

The question I have is whether or not to keep my condo and rent it out or just sell it. My mortgage is about 1750k/mo + 0/mo association dues. I could only rent it for about 00/mo. Since our AGI is so high, I can’t write off the loss. Would it be beneficial at all to keep the condo and write off interest/prop taxes or should I just sell it?

Thanks in advance.

I just began a job working for a company as a bookkeeper with part-time hours. My work hours are classified as contract labor. I am the only (employee?) there so they didn’t want to set up payroll for one person. I agreed to pay my own taxes. I will issue myself a 1099 at the end of the year. Which box would I put my total income made? Can I keep tract of my commute mileage for a tax deduction? I will be driving approx. 30 miles one way. What about tolls? I will probably just take a lunch to work but if I eat out, how about meals as a deduction. Now to make things more complicated, I will be filing married, joint return with my husband and his self-employed business income. I do not have a business of my own. We have our taxes done by a CPA so there is no problem there. My problem is mileage b/c he has mileage too and we have one cell phone to share for my work and his work. Any help will be appreciated. I know to keep all receipts. Thanks in advanc

This is my first year of tax filing as a retired person. So need some clarifications.
(i) Is PF payment to be shown as salary and then deduction claimed? Is it deduction or exclusion?
(ii) Is Super annuation annuity from LIC be considered salary? (I had one annuity payment from my last employment where I retired voluntarily at the age of 50; Subsequently I took up another salaried job. I have been including the annuity as salary income all along. Last year I crossed 60 years of age and truly retired and have two annuities. In one website I read annuities are exempt.
(iii) Post retirement I have been doing some marketing for a commission from a US company to promote their product in India. I have business expenses, but have no formal company. Is the commission from this to be taken as Salary or other income? I have some associated business costs such as internet, telephone, car, petrol, office rent, electricity etc. So should I take commission minus these expenses and project resultant amount as net business income.
(iv) This business income is from a US source in dollars. Service was rendered for the source inIndia. Commission was paid in forex. Does the forex earning make this a service export and get any tax benefit?
Thank you in anticipation

The top 35% marginal income tax rate rises to 39.6%; adding the state income tax, the Medicare tax, the effect of the deduction phase-out and Mr. Obama’s new Social Security tax (of up to 12.4%) increases the total combined marginal tax rate on additional labor earnings (or small business income) from 44.6% to a whopping 62.8%. People respond to what they get to keep after tax, which the Obama plan reduces from 55.4 cents on the dollar to 37.2 cents — a reduction of one-third in the after-tax wage!
Mr. Obama has also opposed other important free-trade agreements, including those with Colombia, South Korea and Central America. He has spoken eloquently about America’s responsibility to help alleviate global poverty — even to the point of saying it would help defeat terrorism — but he has yet to endorse, let alone forcefully advocate, the single most potent policy for doing so: a successful completion of the Doha round of global trade liberalization.

http://online.wsj.com/article/SB121728762442091427.html?mod=opinion_main_commentaries