-
How do I know if my 1099-NEC / 1099-MISC is self-employment income?
Contributed by: TriciaD, FreeTaxUSA Agent If you receive Form 1099-NEC or 1099-MISC, you may wonder whether you have self-employment income or not. Businesses use Forms 1099-NEC or 1099-MISC to report payments made to individuals who aren’t employees of the business. Each form serves specific purposes. It’s important to…
-
How does Schedule C reporting differ for leased vehicles?
Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro If you use a car for your business, you probably know you can deduct some of the expenses related to its use. But what if you lease a car instead of buying one? Does that change how you report your car expenses on your tax return? The answer is yes, there are some…
-
Do I have a business or a hobby?
Contributed by: Phillip FreeTaxUSA Agent, Tax Pro Many hobbies can earn money. Whether you’re making handicrafts you’re able to sell, competing in an activity that awards cash prizes, selling animals you’ve raised, or creating YouTube videos while doing your favorite pastime, any activity that earns money and is done for…
-
Should my Airbnb or VRBO rental income be reported as Schedule C income or Schedule E income?
Contributed by: Phillip B, FreeTaxUSA Agent, Tax Pro Short Term Vacation Rental Rules Short term vacation rentals through Airbnb, VRBO, and other travel websites have become a popular way to make rental income from residential rental real estate. Knowing how you should report this income on your tax return is an important…
-
How do I file a Schedule C for Uber, Lyft and other delivery or rideshare businesses?
Contributed by: TriciaD, FreeTaxUSA Agent If you are a contractor for Uber, Lyft, or other ride share companies, you are considered self-employed. This means you are responsible for paying taxes on your net income (income minus expenses) from your ride share business. You must also pay self-employment tax, which covers…
-
How are vacation home rentals handled differently from other rental property?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Vacation homes are a great benefit to those who can afford to own them. They offer a place to stay when you need to get out of town, and they can be a source of income for the rest of the year. However, the tax code has some special rules to keep vacation owners from…
-
Self-employed health insurance when you have a 1095-A
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro As a self-employed individual who pays for your own health insurance, you may wonder if it’s possible to claim both the self-employed health insurance deduction and the premium tax credit (PTC). You can if you allocate your insurance premiums between the deduction and…
-
Reporting unreimbursed partnership expenses
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Many small businesses report their income and expenses as partnerships on IRS Form 1065. Expenses that are paid out of the partnership entity’s accounts will be deducted as partnership expenses on Form 1065 and will then be passed on to the partners on Schedule K-1. But…
-
Do I legally have to claim all my business expenses?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro One common question that arises for business owners is whether all business expenses must be claimed. Understanding the legal requirements when it comes to claiming expenses can help you make informed decisions and avoid potential pitfalls. Claiming business expenses…
-
Should my royalty income be reported on Schedule C or Schedule E?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro What is royalty income? Royalties are payments for using someone else's property (like their work or land) or giving the property owner part of the income from it (like mining their land). Royalty income can be: a payment to a patent owner for use of a patent. a payment…