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I’m a contract worker, not self-employed. What do I do?
Contributed by: ChristopherT, FreeTaxUSA Agent, Tax Pro This year you started a job as a self-employed contract worker and received a 1099-NEC or 1099-MISC. While doing your taxes, you see that you need to complete Schedule C, Profit or Loss from Business, which concerns you because you don’t own a business. The IRS…
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Is my spouse considered an employee or a co-owner, and what are the tax implications?
Contributed by: TriciaD, FreeTaxUSA Agent If you run a self-employed business, family members might work for you, this could include your spouse. Your spouse might even co-own the business with you. If you jointly own and operate a business with your spouse, the business is considered a partnership unless both spouses…
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What are rental days vs. personal use days?
Contributed by: TriciaD, FreeTaxUSA Agent Managing taxes for rental properties that you also personally use can be tricky. As a vacation home or rental property owner, different from your main residence, it’s important to know how rental days versus personal use days affect your tax return. This understanding impacts…
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How do I deduct the home office expense if I have more than one business in the same home office?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro With the prevalence of side hustles in the gig economy, there’s a strong chance you may need to file multiple schedule Cs for different businesses. There’s also a good chance you may have one home office for all those businesses. If this is your situation, how do you…
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How do I attach Form 1099 using a mobile device?
Contributed by: RustyL, FreeTaxUSA Agent, Tax Pro Here are the steps to attach a Form 1099 to a Schedule (such as Schedule C, E, or F) in your FreeTaxUSA account when using a mobile device. From any page in the software, select the menu button in the upper left corner of the page. (Three horizontal lines stacked on top of…
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How to attach a Form 1099 to your return - The walkthrough
Contributed by: RustyL, FreeTaxUSA Agent, Tax Pro Let's walk through how to attach a 1099 to a Schedule C after the Schedule C and 1099 have both been added to the software. You'll only need to do this if the 1099 wasn’t added directly to the Schedule C. These instructions can be applied to the other schedules and tax…
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How to attach a Form 1099 to your return?
Contributed by: RustyL, FreeTaxUSA Agent, Tax Pro The IRS requires certain income to be reported on specific schedules and entered on Form 1040, Individual Income Tax Return. Some examples of this are: Business Income (Schedule C) Capital Gains Income (Schedule D) Rental Income (Schedule E) Taxpayers often receive a Form…
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Can I claim pre-rental expenses?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Sometimes a property is made available to rent but doesn’t get rented right away. As the property owner, you are likely covering expenses such as the mortgage, property taxes, insurance, and utilities. Without rental income to report, you might be wondering how to handle…
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Do I have any prior depreciation if I have been taking the standard mileage deduction?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro You have been using your car in your business for many years and claiming the standard mileage rate method has been a simple way to deduct business use of your car. This year, you either had enough actual car expenses to make using the actual expense method more…
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Self-employment tax: What is it?
Contributed by: Tricia D, FreeTaxUSA Agent Being self-employed can lead to a significant tax, as there is no employer to withhold taxes from your earnings. However, paying self-employment tax is important as it keeps you compliant with the IRS and supports your future benefits such as retirement income, disability…