How to file 1099 form? New York personal tax declaration

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:

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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

•Supplies/Small materials

•Travel and meals

• Utilities/Utilities

•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.

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