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Auntbeth
Level 2

profit/loss/1099.....

I need some help. I am trying to move from the house I own to renting. This is the first yr that I have not worked, am able to profit from my self employment. I am being asked for a 1099 for proof of income and I am confused. The turbo tax product I use just gives me a Profit/Loss statement, not a 1099. his is really important as I signed a new client and am making more than enough.  Is a 1099 just something I can make??? If I make one up, do I have to file it right now??? Or do I have to wait until next yr to move? Not everyone is ok with a profit and loss statement. Please can someone direct me on how to show proof of income??? Thank you, In advance

1 Best answer

Accepted Solutions
VolvoGirl
Level 15

profit/loss/1099.....

You don't make a 1099NEC for yourself.  If someone pays you $600 or more in a year they are suppose to give you the 1099NEC from their business.  But individual people don't have to give you one.  You report your income as Cash.  To show proof of income you probably give them a copy of your tax return with Schedule C.

 

You only give 1099NEC to people you pay $600 or more to.  But not to yourself.  You don't pay yourself.  All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.  If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.  

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5 Replies
martinmarks
Level 10

profit/loss/1099.....

There's a TT page that has some ideas..... https://mint.intuit.com/blog/housing/proof-of-income-1204 ......not sure how helpful it is though.

You can always ask those who paid you to send you a 1099 but you can't and shouldn't fill those out yourself for money you received for goods you sell or services you provide.

VolvoGirl
Level 15

profit/loss/1099.....

You don't make a 1099NEC for yourself.  If someone pays you $600 or more in a year they are suppose to give you the 1099NEC from their business.  But individual people don't have to give you one.  You report your income as Cash.  To show proof of income you probably give them a copy of your tax return with Schedule C.

 

You only give 1099NEC to people you pay $600 or more to.  But not to yourself.  You don't pay yourself.  All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.  If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.  

Carl
Level 15

profit/loss/1099.....

I am trying to move from the house I own to renting.

I am confused by the above statement. The only thing I know for sure, is that you actually own what is right now, your primary residence.

So are you moving out of this primary residence and into another property that you do not own?

Or are you referring to converting your primary residence from personal use, to a rental property?

This is the first yr that I have not worked,

Are you referring to the 2020 tax year for your 2020 tax return? Or are you referring to 2021? I would assume you are referring to 2021. But my assumptions are almost always wrong.

am able to profit from my self employment.

What kind of business do you own? A sole proprietorship? Single member LLC? Multi-Member LLC? S-Corp? C-Corp? Something else? This can really matter, big time. It also may (or may not) matter big time, if you are married and live in a community property state.

I am being asked for a 1099 for proof of income and I am confused.

Being asked by whom? For what purpose?

Not everyone is ok with a profit and loss statement.

That very well may be. But who or what entity is "everyone" is your specific case?

Please can someone direct me on how to show proof of income???

Assuming you have a separate bank account for the business, bank statements over the last year or more will almost always suffice.

I've ran into situations with bank loan officers that, when it comes to taxes, they don't have a clue. If that occurs, don't play games with the loan officer. Work your way up to the bank manager if necessary. If the manager is just as clueless, take your loan needs elsewhere.

Auntbeth
Level 2

profit/loss/1099.....

Ok, I can have all my clients (medical billing company, so many clients) give me a 1099, but that would be giving my clients person info to a landlord/housing community. Yes, I gave them last yrs income taxes with a schedule C, but they have turned me down based on I didnt give them my 1099. In fact the exact way they are stating is a ( as in one) 1099. See my confusion? This still doesn't really give them an idea of how much I make now, which I can figure out. Its the whole I need a 1099 form from you that is confusing. Is it acceptable to give a company all of your business 1099 that will have personal info on it (tax ids are like SS)? 

VolvoGirl
Level 15

profit/loss/1099.....

They won't take a copy of your Schedule C?  A 1099 won't show all you income.  Can you show them your bank statement deposits?  Ask someone else in the office what else they can use to prove your income.  

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