I was laid off about five years ago & unable to find a decent job I started doing my own thing to stay busy. Recently, I also gave it a name. My questions are multiple.

[davecrockett]

After I was laid off about five years ago & unable to find a decent job I started doing my own thing to stay busy. Recently, I also gave it a name. My questions are multiple. One of my clients typically gives me a 1099. However, this year they did not. They are listed on Turbo Tax as they typically provide a 1099. How must I list their payments this year since they did not issue a 1099 this year & thus there is no number to enter on the Turbo Tax line?
Question two, do I really have to continue listing all of the 1099s individually every year (there are many) & can I not just list it as income as I do on my records?
Question three Is again, can I not just list the total income from all sources (1099 & not), especially as some of the 1099s show more income than I actually received during the year & some show less & then of course there is income that did not even generate a 1099 that I have?

[CathiM · Accepted solution]

You can just enter your total self-employment income in TurboTax instead of entering each 1099. Make sure you keep your 1099s and all other documentation in case the IRS questions it. If your total income includes everything you received, you should be okay. Many businesses receive more 1099s than is reasonable to include in their tax return. You can delete the 1099 in TurboTax that is a carryover from last year.

[davecrockett]

Cathi, Thank you, I really appreciate it. Each & every year I have been trying to keep everything perfect & have listed all eight of them plus the general numbers. However, it gets complicated like this year not receiving one, sometimes the numbers do not match exactly even though I go over our bank numbers & noted numbers with a fine tooth comb to make sure I did not make a mistake, etc. It just makes for a lot of extra work & misery for the very few dollars I make. What is the cutoff number where they generally consider too many to list?

[CathiM]

I don't know the number for sure but I know at the tax firms, we don't enter them in individually even for 8 or so. As long as the total income on Schedule C is not less than the total of the 1099s, we use the total income the business owner gave us.

[davecrockett]

Cathi, Thank you. I am really glad to hear that as dealing with all the different 1099s, some incorrect numbers, some in some years & others not, it makes things more complicated than I think they should be & frustrating. There is no question that the overall numbers on the 1099s that I received are less than the total income. In fact, even though some 1099s are higher than what I received (even by a quarter), most are right on target, & some are even lower. If you add the numbers for the income that I did not receive a 1099 for it is still higher. There is one that is off by over $200.00 & it is always a real headache & challenge going over the numbers with them & eventually getting them right so I just dread having to do it. I have proof in the bank accounts at the very least so I hope that will do the trick then & make things much easier & less frustrating. Thank you for your help, I really appreciate it.

[CathiM]

Your welcome!