How do I know which accounting method is used by the contractor I work for if I am not the business owner?

linataxx — Sat, 01 Jun 2019 17:59:54 GMT

When you are self employed you are in business for yourse...

VolvoGirl — Sat, 01 Jun 2019 17:59:56 GMT

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

For the future, There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....
http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.

You should say you use the Cash Accounting Method and all income is At Risk.

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27 (goes to 1040 line 7).   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 (goes to 1040 line 14).  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  How to enter self employment income
https://ttlc.intuit.com/replies/4801198

The accounting method question is actually being asked fo...

JulieCo — Sat, 01 Jun 2019 17:59:58 GMT

The accounting method question is actually being asked for you and your self-employed scenario.

If you received a 1099 MISC form then the IRS treats you like a self-employed owner and so the accounting question is asking you, for the income you received, do you use the accrual or cash method when reporting your income.

It may not seem like the question applies to you, but it is a required entry on the Schedule C form which is where your 1099 MISC income will be reported.

You can just mark "cash method" which means the income is reported when it is paid.

topic How do I know which accounting method is used by the contractor I work for if I am not the business owner? in Business & farm

How do I know which accounting method is used by the contractor I work for if I am not the business owner?

When you are self employed you are in business for yourse...

The accounting method question is actually being asked fo...