Hi, I am an independent contractor and received a 1099-misc from my employer. I have turbotax home & business 07, and I think I enter the 1099-misc under personal income but I want to make sure because for the 06 turbotax home & business, there wasn’t a 1099-misc for personal but business only.
One last thing, turbotax is great, but I want to maximize my deductions and was wondering it is worth the money to let a tax expert review/do my taxes. All I have is a 1099-misc and 1099-int. I’ve made less than 30k that year and after taking off the deductions I owe about 6k. I want to try to make this around 4~5k if possible. Does anyone have any recommendations and will know about how much it’ll cost? Thanks!
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Your 1099misc income goes on a Schedule C, even if you do not have a name for your company. If you entered it on the line for wages or other income it is incorrect.
On the Schedule C it shows all the deductions you may be able to take.
If you are not sure which deductions you can take you may want to use a tax professional for at least one year to get you started so you will know what you can deduct and what documents you will need as evidence if case of an audit.
you dont need a tax pro….turbo tax is good enough.
the thing about the 1099-misc is that you probably had not tax taken out…so now you have to pay fed, state, and even self employment tax
paying now is cool though becuase if you were given a w2 you would have had that and even more money taken from you during the year….and now you only send exactly what you owe.
1099-MISC is always entered on Schedule C (or schedule C-EZ). This is income paid you “as a private contractor”. You deduct your business expenses from that income and report the net profit or loss as your income.
When you completed Schedule C, did you include all your business expenses? You can also depreciate your vehicle if it’s used in your business or you can claim mileage (if you don’t want to depreciate) if you kept a journal of business miles. The only way you’re going to get the amount owed down is to come up with more expenses to claim on Schedule C. Obviously, they have to be legitimate expenses and you need receipts to prove them.
Either you have the expenses or you do not. No tax professional can come up with those if you didn’t incur them.