![]() 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. Read more: www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxes www.cnbc.com/2021/12/03/who-can-claim-home-office-tax-deduction-if-they-worked-from-home.html
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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. ![]() New vendor 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 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. |
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