The IRS is increasing the mileage rate to 65 cents for the second half of 2022.
Working from home?
If you are a contract worker or small business owner, you may be able to deduct home office expenses on your tax return, even if you are a renter.
Tax law changes in 2018 prevent employees with exclusively W2 income from taking advantage of this deduction. But, if you have 1099 or Schedule C income, you may be able to claim a portion of your mortgage/rent, utilities, and other home expenses.
2022 IRS Mileage Rate = 58.5 cents
The IRS mileage deduction rate has increased from 56 cents to 58.5 cents per mile.
2021 Mileage Rate is 56 cents
Do I need to send 1099s?
1. Considered “goods” and not reportable: Payments for merchandise, telephone, freight, storage, and similar items.
2. Credit Card payments are reported by merchant services provider on Form 1099-K.
3. Entities treated as corporations for tax purposes do not need to receive 1099s.
4. Corporations paid for attorney fees or health care services are not exempt from 1099 filings.
When you hire a new vendor, request that they send you a copy of their W-9. It has the information needed to prepare 1099s. If a vendor will not send their W-9, you may be required by the IRS to withhold 28% of payments to the vendors.
<<< Click to download W-9 form.
1099s may be generated using your accounting system (QuickBooks Online, etc) or an online service (tax1099.com, 1099online.com, etc), or hand written.
<<< Click to download 1099 form.
Lauren Gann, CPA
Proving resources for your accounting questions