@BirdyC wrote:
You don't list each MSC and amount received from each. You'll list your total gross income, then your expenses, which should be broken down into categories per Part II on Schedule C. You can add categories if you have expenses that don't fit into the standard ones. Your mileage will be separate from the rest. If you purchased a computer, printer, camera, cell phone, etc., in 2022, you need to figure out what you should deduct in full and what to depreciate, how much of the cost to expense against your business, and so on.
Have you looked at the Schedule C? That should answer most of your questions. If this is the first time you've done your business taxes, I highly recommend using a tax preparer. Chances are you'll owe less in taxes by doing so.
You're welcome, and that's why I suggest having a pro do your taxes, at least for this first time around. I've been self-employed for around 40+ years and have never done my own taxes. Nor would I attempt them!@olympia tennenbaum wrote:
Thanks SO much for writing. My better half thought it was really bad for me to add everything in a lump for income. Neither of us has been self employeed before.
@olympia tennenbaum wrote:
If I understand correctly, you're saying to lump everything. So, let's say I received $1000 from ten MSCs I'd put $10,000 for income. Then if $7000 of the money receive was for reimbursements, I would put the $7000 of reimbursements under expenses. Is this further broken out by category? Would I detail $1000 in groceries, $1000 in fast food, $1000 in fine dining, etc?
I did add in things like mileage, cell phone, internet, calendar/planner, health insurace, etc. I guess I'm confused about how to treat the purchases required for shops.
@olympia tennenbaum wrote:
If I understand correctly, you're saying to lump everything. So, let's say I received $1000 from ten MSCs I'd put $10,000 for income. Then if $7000 of the money receive was for reimbursements, I would put the $7000 of reimbursements under expenses. Is this further broken out by category? Would I detail $1000 in groceries, $1000 in fast food, $1000 in fine dining, etc?
@mjt9598 wrote:
Yes, please hire a competent tax professional (not just anyone will do). Mine does not charge that much more than what TurboTax was charging me for the self-employed version.
@BirdyC wrote:
@mjt9598 wrote:
Yes, please hire a competent tax professional (not just anyone will do). Mine does not charge that much more than what TurboTax was charging me for the self-employed version.
This! Best person to hire is someone who either specializes in small business returns or has a lot of experience with them. Contrary to popular belief,it doesn't have to be a CPA who will charge an arm and a leg! But it should be an IRA-registered/qualified one.
@BirdyC wrote:
You can either report all of your income on Schedule C, then deduct the reimbursements as expenses, or deduct the reimbursements first, then report the balance as your gross income on Schedule C. In neither case is that your taxable income, since you will still have expenses against that amount.
It's not necessary to break down your revenue by MSC. There's not even a spot to do that on Schedule C. I'm curious as to how someone does this. Attach a list to your return? And why, when it's not needed. I'm literally confused because I've never heard of this. I break it down on my own spreadsheets, of course, but that itemization doesn't go on Schedule C.
You don't even have to send in your 1099s with your return.
@myst4au wrote:
TurboTac asks me to individually list each 1099 that I receive, so I do. Then I report the aggregate revenue of everything that is not included in the 1099 Forms. There is no way that I know of to associate expenses with an individual 1099 Form. My expenses are all aggregated by category, the largest being the mileage deduction, but every penny helps.
@mjt9598 wrote:
Mine is a CPA, but does not charge an arm and a leg. Only about $100 more than what I was paying Turbotax.
@jazzzyjd wrote:
google spread sheet for each company and then I paper pencil add up my totals because I don't know how to apply functions that involve different sheets (and I am old so I like paper and pencil for math)
@maverick1 wrote:
Last minute tax filing going on? Oooh, the drama, the suspense, the intrigue.
Oh yeah, and the headache.
Maybe start earlier next year?
@Shopper797 wrote:
How do you track your earnings and reimbursements? Paper pencil? Computer? Other?
@sandyf wrote:
But they also have something called Turbo Tax live where you just send your info in and a CPA does it all for you, I think the cost was about $250. Another version gives you full access by phone to a CPA who will help you fill in the form yourself step by step. Many times when I called with the do it yourself version the phone was answered by a CPA who gave me all sorts of extra info for free. I was filing late last year so it may be that during the height of tax season you would not reach a CPA randomly. If you live in an expensive town like I do you cannot find someone to do your taxes for that much.
@Capurato wrote:
All income must be reported.
Work with a tax pro, or a tax software.
I was able to deduct things that most people wouldn't think of.
@mjt9598 wrote:
Yes, please hire a competent tax professional (not just anyone will do). Mine does not charge that much more than what TurboTax was charging me for the self-employed version. A few companies do include all money paid on their 1099s, even though that is not correct. Most correctly include only the fees paid, not reimbursements.
@Madetoshop wrote:
Regarding my personal experience, certain MSC's pay what they call a "FLAT FEE" for their shops. That is your fee and whatever they require you purchase/get reimbursed for is included in that fee. That fee is totaled and determines whether you receive a 1099 or not. I will not comment on anything further.
@mjt9598 wrote:
Yes, please hire a competent tax professional (not just anyone will do). Mine does not charge that much more than what TurboTax was charging me for the self-employed version. A few companies do include all money paid on their 1099s, even though that is not correct. Most correctly include only the fees paid, not reimbursements.