: TER General Board Discussion : 'Tis the time of year

StuffedOpus 976 reads

posted 10 years ago

1 / 13

'Tis the time of year - another tax question

I provide website design and development for providers as a side gig. I don't make a tremendous amount of money from it per year but it's enough that I'm pretty sure I should be paying taxes. I'm hesitant to start asking my clients for a 1099 because I don't want to put them in any position that could ignite curiosity from a certain government entity. Here comes the dumbest question you've ever heard: can I declare income without stating where it came from? I know Uncle Sam in the end just wants whatever money they can get. Thanks in advance for any responses.

bonordonor 295 reads

posted 10 years ago

2 / 13

Yes

Lots of small businesses get income from individuals that don't provide 1099s. And actually, 1099s aren't even required from companies that pay less than $600 in the tax year.

lester_prairie 12 Reviews 241 reads

posted 10 years ago

3 / 13

consult

Lots of cash businesses out there with no 1099's. If you want to stay legal, just declare it as cash income. However you should consult an accountant (don't really need a lawyer for this) to make sure you are getting all your legal deductions

maxwell44 23 Reviews 250 reads

posted 10 years ago

4 / 13

Taxes

1. You don't need your clients to give you a 1099. That is on them if they want to do it, it is not your concern if they don't. You are supposed to declare your income regardless.

2. You only declare the amount of income for your work in web development. You don't state where it came from. You just say what it is that you do to earn this money (web design), that is all.

BrooklynKallway See my TER Reviews 221 reads

posted 10 years ago

5 / 13

Disclaimer: Not an accountant

A 1099 does not apply to you. You are self employed, you are required to not only pay taxes on income but also SE (social security / fica )

Your customers would not give you a 1099 at all.

You are Self employed, there are no requirements on tax forms where payment type received is needed.

You should see an accountant who can help you minimize taxes with deductions.
No need to specify who your clients are, you are a web developer is all your accountant needs to know.

It should not be more than a few hundred for a small sideline biz like yours, and a professional will be a godsend for minimizing taxes, contributing to retirement and peace of mind in complying with the ... I R S 😈

Good luck!

StuffedOpus 148 reads

posted 10 years ago

6 / 13

This is fantastic - thanks for the advice everyone (eom)

END OF MESSAGE

impposter 49 Reviews 227 reads

posted 10 years ago

7 / 13

If you get income from modeling, you should declare that, too.

I assume that this is you

Related Link: Stuffed and non-stuffed

honeybutter 169 reads

posted 10 years ago

8 / 13

Re: If you get income from modeling, you should declare that, too.

doh! you found me out!

Pavliena See my TER Reviews 193 reads

posted 10 years ago

9 / 13

As long as your business do not have invenroty cash based is fine - look in to Sch C and c

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

here at the end you can find activity codes which you may choose for your Sch C

As long as you do not require have inventory - cash based method is ok and you are not a plumber who provides parts in connection with his service of repairs is not eligible for the cash method of accounting because those parts constitute an income-producing factor.

I would use other services and all other professional services

Clients would not provide you with 1099MSC

Unless you have other then personal service business and be able accept donations there from established patrons who do know you very well to trust you, and you know them well to allow them to benefit by tax deduction.

But it is other story