How to file 1099 form? New York personal tax declaration
Any 1099 form corresponds to the personal SSN that received the income. When you receive 1099 Forms from banks/brokers/or other institutions, it means that the IRS has also received it simultaneously. So don’t take chances and miss the 1099 form.
Common 1099 forms:
1099-INT（Interest Income）：interest settlement
1099-K：Billing generated by using third-party payment software (such as Square, PayPal, Venmo)
1099-NEC (Non-Employee Compensation): Self Employed/Freelance Income
1099-MISC（Miscellaneous Income）：Settlement of rent, copyright, etc.
1099-DIV（Dividends and Distributions）: dividend income
1099-G: Unemployment benefits, state and local government tax refunds.
1099-R：Retirement account changes.
Note: From 01/01/2022 onwards, the new policy will receive 1099-K if you receive remittance over $600 through a third-party app; and if you receive Uber’s referral bonus and other non-driver income and exceed $600, It will be 1099-MISC。
What are the tax deductions for 1099-NEC representing wage income?
· Self-Employment Tax half-deductible
According to IRS regulations, in the case of self-employment, half of the SE Tax is deducted when calculating taxable income, and the SE Tax as an employer can be filled in the tax form as a deduction.
· Business expenses deduction
When calculating SE Tax (self-employment tax) for self-employment income, the IRS allows deductions for Expenses/expenses. The figure below shows the expenses that are allowed to be deducted in Part II of Schedule C:
As shown in the figure, the more common business expenses/Business Expenses used to deduct 1099-NEC income are:
•Car and truck expenses/transportation costs
•Rent or lease/ rent
•Travel and meals
•Other Expenses/other expenses (commonly include: Cellphone bill/telephone bill, Internet/network fee, Communication device/communication tool, Business suit/uniform business clothing/uniform, computer/office computer, etc.)
· Self-employed health insurance deduction
Not only can you deduct your own insurance premiums, but also the medical insurance purchased by your immediate family members (wife/husband/children) under your name. All of the following conditions need to be met:
1. Self-employed (employees with W-2 are not eligible)
2. Net profit > 0 (the amount on Line 31 of Schedule C is greater than 0)
3. There is an upper limit to the deductible amount of the insurance, and the deductible amount cannot exceed the amount of Net profit (Sch. C Line 31) (for example: the insurance cost is $800, but the Net profit is only $700, and the deductible amount can only be $700. )
4. Medical insurance must be purchased under your or your company’s name;
5. Not enjoying the medical insurance for you under other policies at the same time.
· Qualified Business Income Deduction/QBI deduction (qualified income deduction/QBI deduction)
The deduction amount is: 20%
Base of deduction: Minimum of (QBI/business income from self-employment business, Taxable Income)
Income restrictions (2023): Only in the case of Taxable Income (before QBI deduction) <= $182,100 (Single)/$364,200 (Married Filing Jointly) can deduct QBI without restrictions regardless of industry.