Did You Receive a 1099?
Do you perform odd jobs around the year and receive a 1099 for employment that’s not your everyday work? If so, your expenses can be deducted! If you do anything from refereeing, modeling, fishing, etc. and are compensated for it, you should receive a 1099 MISC for any gains over $600. You will be taxed on that amount from the 1099 MISC at 15.3% for self-employment taxes plus it’s added to your basis to be taxed again at your ordinary tax rate. In order to avoid paying the maximum amount on your 1099 income, expenses and mileage towards those odd jobs can be taken to offset any gains. If you find yourself with a 1099 MISC, give us a call and start saving money on your taxes today!John Pharr CPA
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