- 1). Review each 1099-MISC form that you received. Make sure that the reported funds are accurate. Double-check each 1099-MISC that you received from each company for errors. Report any errors to the company that issued the 1099-MISC.
- 2). Prepare a Schedule C if you received 1099-MISC forms from multiple companies that you consistently work for. Use the income that is listed on line 7 on your 1099-MISC forms for the Schedule C. List the 1099-MISC income on line 1 of Schedule C. According to IRS.gov, expenses associated with generating this income--such as advertising, office supplies, auto expenses and insurance--are included in Part II of Schedule C.
- 3). Complete a Schedule E if the income on your 1099-MISC is related to royalties and rental income. Report maintenance expenses associated with the royalties and rents listed on your 1099-MISC forms on Schedule E. Schedule E allows you to detail all of the expenses associated with your earnings.
- 4). Report income from your 1099-MISC forms on line 21 of Form 1040 if you do not receive a 1099-MISC form from the same company on an annual basis. According to AllLaw.com, you must also report consulting income listed on your 1099-MISC income on line 21 of Form 1040 even if your job was a one-time earning situation.
- 5). Complete a Schedule SE (self-employment tax form). According to IRS.gov, the net profit calculated from Schedule C, line 31, should be entered on line 12 of Form 1040 and on line 2 of Schedule SE. Schedule SE is the form you will use to calculate self-employment taxes on Form 1099-MISC earnings.
previous post
next post