Virtual Assistant Forums | Work from Home

winslowgirl · #1 (**permalink**) 01-06-2008

This is my least favorite time of year. Emailing all my clients, reminding then I made over X amount of money, and yes, they have till Jan. 31 to mail me my 1099..

I just send out my regular email to them all, you know, no matter how nice I make it, don't I just want to say, mail out immediately!!

Ahh.. the joys of independent contracting..

I love the clients I've had forever, they are wonderful predictable. I've already received one, another I am sure is in the mail, the rest, well... Reminder emails will have to just keep reminding..

So.. anyone else sending out reminder emails, anyone already receiving their 1099's and getting ready for tax time???

Office Goddess · #2 (**permalink**) 01-07-2008

I'm the one sending the 1099s this year 'cuz I didn't earn $600 from any one client

If you have used good accounting software to track your income, 1099s are not necessary to file your taxes. The penalty is on THEIR end if they don't provide one to you...

Tess · #3 (**permalink**) 01-07-2008

Lily, I would give anything to know what you know about 1099s, and taxes in general - seriously...

winslowgirl · #4 (**permalink**) 01-07-2008

I'm with Tess... we want to know what you know!!

winslowgirl · #5 (**permalink**) 01-07-2008

Ok wait.. I have documented everything I've made.. so I don't need a 1099, I can just file what I know I've made from each?? Forgive me for not knowing, but in this area, I am clueless...

HELP!

Rebecka Melson · #6 (**permalink**) 01-07-2008

You don't have to list how much you made from each on your tax return. You just list your Gross Income, which is the total of all your income.

The purpose of the 1099 is just so the IRS knows the minimum amount of income you should be reporting. So, for instance you recieve $10,000 in 1099's, and you only reported $8,000 in income the IRS will want to know why you didn't report the other $2,000. However, if you recieve $10,000 in 1099's but actually made $12,000, you should report the $12,000 on your tax return, the IRS will not question this.

As Lily stated, the client will only send you a 1099 if they paid you over $600 for the whole year. Also, individuals are not required to send 1099's so if you have a client that is an individual and not a company (or sole-p) and they paid you over $600 you may still not recieve a 1099 from them. So, in general your 1099's received will be less than your actual gross income.

Since you don't have to send 1099's in with your tax return (only W-2's) you can go ahead and file your taxes even though you haven't received all of your 1099's yet, as long as you have an accurate income amount.

winslowgirl · #7 (**permalink**) 01-07-2008

Lots of great information, Rebecca!! I thank you!

Office Goddess · #8 (**permalink**) 01-07-2008

Thanks, as always, Rebecka! I was "off-line" late morning so I'm glad you were able to jump in w/the needed info

Tess · #9 (**permalink**) 01-07-2008

Yes, thanks!

Between you and Rebecka we've got some great (and very important) info here. Taxes are something I take very seriously but personally get so muddled about.
Your wisdom is much appreciated