B .
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Pay taxes according to your 1099. |
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Wayne Z
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You pay taxes on the net income after the "business" related expenses.
Expenses such as Rent, Car Payment, Groceries, etc. are not deductible. |
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Judy1
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Your gross income is what you take in - that includes anything on the 1099's plus anything you get that doesn't have a 1099. You can't deduct your personal bills, but do subtract your business expenses from your gross income, and only pay taxes on your net. |
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canajoh
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Your gross income must be reported on your tax return. Yes, your business expenses are deducted, and your net income is what is taxed. Check with a tax accountant, or look up info on the IRS website to see if you have the option of the accrual method or cash. This will affect what you report within a given year, i.e., accrual method would put the gross income from a sale in the year of the sale, cash method says it's in the year you received payment. Also, check the rules from a-z, about social security contributions, estimated tax payments, use of home office for business, etc. Check online or a book store for something that explains record keeping requirements for a sole proprietorship. Quickbooks or Quickbooks Pro are great accounting software. Good selling to you. |
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Molly
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Net taxable income!
Some things you spend money on aren't deductible (think personal expenses). Some things you don't spend money on ARE deductible (depreciation, etc.).
If you have a lot of activity and little time to invest in learning about taxes, consider hiring an accountant. |
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Linda M
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gross taxes.
you fill out the irs 1040 and include the gross amount of all your 1099s and then you itemize your deductions, at the end of it all you look up your taxes according to your income. not your expenses. |
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acmeraven
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The total of the 1099's is your gross; you subtract from that your operating expenses to arrive at your net income; which is what you pay your income and SE taxes on. I would urge you to go online to IRS.GOV-forms or use the toll free phone number to order a PUBLICATION 17; which will give you a great deal of "how to" information regarding taxes. |
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Nothingusefullearnedinschool
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Income tax is payable on gross income. However, if you are self-employed, you are allowed, as with any business, to deduct all applicable expenses associated with producing that income.
You also have to pay both "shares" of social security taxes (the part that an employer pays and the part an employee pays).
Basically, follow what is required for a 1040. You can also get more information from the IRS website, which will allow you to download a form; you can fill it out, make changes, save it, print it. |
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extra_37
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You will pay taxes on the amount shown on the 1099 less the BUSINESS expenses. Consult a professional since this can be rather complicated and you could end up paying the gov't a lot more than you have to. |
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K M
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adjusted gross. your bills??? the bills depend on if the items purchased were used to make the money on the 1099. you can't take your beer bill off. |
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Bogart
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You pay taxes on your gross income. |
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jdecorse25
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Gross income. |
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DOC5242
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you should be filing a 1040 schedule C, not a 1099, and you pay the taxes only on anything over 600 per transaction pre month. that would be your gross. |
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