Report 1099 or checks?

Forum|Forum|5 years ago
March 4, 2021
4 replies
17 views

If self employed and receive check/cash payments and at the end of year receive a 1099 do I report only one or the other?

Not A Product Question

Best answer by VolvoGirl

I would just enter your total business income as Cash or General income. You don't need to enter the actual 1099Misc or 1099NEC. Only the total goes to schedule C line 1.

VolvoGirlAnswer

Level 15

I would just enter your total business income as Cash or General income. You don't need to enter the actual 1099Misc or 1099NEC. Only the total goes to schedule C line 1.

nini123Author

Level 2

Thank you! That makes sense, I just was not sure if the 1099 nec had to be reported or noted down. As long as my income matches or exceeds (since some do not give 1099-nec) then I should be ok right?

I don't need to report any this year but just started a small self employed business and wanted to be sure I had my ducks in a row.

VolvoGirl

Level 15

Right.

You might want to use Quicken or QuickBooks to keep tract of your income and expenses. There is one called QBSE QuickBooks Self Employed that works with Online Turbo Tax and will give you a free online tax return next year.
http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099NEC or 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.

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. The SE tax is already included in your tax due or reduced your refund. 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

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