1099 Question *Income Taxes*

13 replies
I made a little over $600 dollars last year from clickbank and received my 1099s. I filed using my social. Do I just add that in with my regular 9-5 job? Also, can I claim anything like odesk outsourcing, softwares bought etc.?

Thanks
#1099 #clickbank #income #income tax #internet marketing #irs #question #taxes
  • Profile picture of the author rmolina88
    Yes, I claim everything I've used to promote like solo ads and outsourcing.
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  • Profile picture of the author Karry
    You can use Schedule C for your 1099 income to deduct your business expenses related to the income.

    It's always best to consult with a CPA even if you want to prepare your own tax forms. The expense is worth it to minimize your taxes and avoid mistakes.
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  • Profile picture of the author Jason Kanigan
    In general, any money you spent with the aim of making money is an expense to be deducted from your gross revenue. WSO bumps, solo ads, investments in themes, software, anything that you bought with the intention of it helping you make more money.

    I have an s-corp and an accountant and am also in NC. It really helps.

    See your accountant for the judgement on what is and is not allowable.
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  • Profile picture of the author GlobalTrader
    Here is a link to the IRS Schedule C instructions - it will help you identify what you can and cannot deduct from your income - you can also download the Schedule C form from their site as well:

    http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
    Signature

    GlobalTrader

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  • Profile picture of the author AverageGuy
    anything related can be reported as expense. and literally, any $ you got (not just > $600) should be reported for tax. If it is >$600, they must send you a 1099.

    in some states, i.e. california, you need to report User Tax for the expense you reported if you did not pay State Tax. For example, you bought a PC from amazon for your business, you needed to pay the User Tax for your business (assume you are in california, and this is true for 2011 if I'm not wrong. in 2012, amazon may already charge you state tax).

    a simply way is to use a tax software.
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  • Profile picture of the author longblog
    You don't add it in with your regular job, you report it separately as 1099misc. Additionally you are going to want to file a schedule C which will drastically reduce your tax liability. You can write off a portion of your rent or mortgage, you computer, your internet bill, your cell phone, your PG&E, the list goes on and on. Get turbo tax for business, or talk to a tax prep specialist.
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  • Profile picture of the author Suze Thomas
    As the other posters have mentioned, you should file a Schedule C, so you can deduct your business expenses. You may find a big portion of those $600 earnings will be offset. You'll also owe social security tax on some portion of it.
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  • Profile picture of the author jvm127
    I just dealt with this for the fist time myself. I received a 1099 from Amazon Payments for money they processed for me. I did not, however, receive one from Google Checkout and I processed a considerable amount of payments through them. I think the difference is Amazon made me give them my SSN and Google has not to this point. I'm wondering how I even claim that Google money or if I even have to.
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    • Profile picture of the author longblog
      Originally Posted by jvm127 View Post

      I just dealt with this for the fist time myself. I received a 1099 from Amazon Payments for money they processed for me. I did not, however, receive one from Google Checkout and I processed a considerable amount of payments through them. I think the difference is Amazon made me give them my SSN and Google has not to this point. I'm wondering how I even claim that Google money or if I even have to.
      Google is really bad about this. I received my first 1099 from them this year and I've been getting sizable monthly checks from them since 2008. Make sure you still report the income because although Google isn't send you the right documents, they're certainly sending them to the IRS.
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  • Profile picture of the author Lukas
    Hey, I just called the IRS and asked what is this penalty notice I have this year and last year. They said it is due to underestimating your taxes. I pay every April 15th like I always have as a 1099 guy, the last 20 years working in real estate.
    How are they to know that I get all my money reported on a 1099 every quarter or divvied up that way?

    I found my answer as far how they know-
    Code:
     http://www.edd.ca.gov/payroll_taxes/Required_Filings_and_Due_Dates.htm#ReportofIndependentContractorsDE542
    I am sure the Fed knows too then.

    Some 1099 people make their bundles at year end for the holidays and make very little the 1st 2 or 3 quarters.

    When did 1040ES start?
    I guess smaller real estate companies do not report it and larger companies do when they use ICs just like an employee (pay them every 2 weeks) to circumvent the benefits.

    Do you guys pay your taxes quarterly or all of it on April 15th and then get a penalty notice 3 months later?

    I was saving money up all year and I could've paid them all along. doh!!
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