I did some work as an independent contractor a couple years ago. From that, I continue to receive 1099 Income, but I am no longer an independent contractor. Are there any business deductions or home office deductions that I can still take advantage of?
Can you explain more? If you are receiving royalties or a commission, but are not currently performing "work", your income may be able to be taxed differently than on schedule C.
Thank you for responding.
As an independent contractor, I sold a company's service that is billed monthly. I get a commission on that monthly payment as long as the customer continues with the service. I receive a 1099-NEC. I do not perform any independent contracting "work" anymore, but I continue to receive these residual payments.
Please clarify your question.
Please contact us again, and provide some additional details.
A friend of mine has an SEO business / Social media advertising company. I brought on a few clients for him a few years ago and he still pays me a monthly commission as long as they remain clients for him. I only sold it. My friend's company provides the service. I am no longer calling on potential clients for him.
I am just curious if there are any business deductions I can claim on that income? Thank you!
You can deduct any expenses that are ordinary and necessary to generate the income you are receiving. However, it sounds like all you are doing is receiving money for chores done in the past, so your deductions would be minimal at best. One thing I can think of is the cost of preparing your business schedule on your tax return if you pay extra for that and it is solely for reporting the income you reference.