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How to do 1099's?

My employers have issued me with 1099s .. what expenses can I claim?

  • I'm new to the country and new to tax returns. I've done some consultancy work for a couple of employers over the last few months of 2010 and they've both issued me with 1099s. I have a total of $5,300 in income. Do I need to submit a tax return for this amount and if so, how much would I be expected to pay in taxes? Also, which expenses should I claim?.. I'm thinking travel, lunches and cell phone. I would be grateful for any input.

  • Answer:

    If you travel out of your home area, such as going someplace where you stay overnight, then travel expenses may be deducted. For meals, you can deduct half of the cost. Lunches other than while away overnight, no. Cell phone - if you can show you use it ONLY for business and have another cell phone for your personal use, yes. Otherwise you can deduct only separately billed long distance calls that are for business.

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File. Anything work related can be written off, from travel expenses to food while working, etc.

Usually expenses that help you earn income. Your lunch is not an expense. If you take a client to lunch and discuss business then you can deduct half the meal. You must file a tax return with a schedule C and SE if self employment is $400 or more. Cell phone - you can only deduct the charges for an actual business call. If you have a one price phone and the calls are not itemized then it is not deductible.

Unless you are having business meals for clients, food is not deductible. The IRS figures every has to eat where ever they are - working or not. If you are new to the country AND taxes, go to Jackson-Hewitt or H&R Block and have them do your taxes. They can identify all the possible expenses that you may claim. Commuting expenses are not deductible, unless you went between clients on a single day. Then the distance between the 2 clients is an allowable expense. You may not even have to file with such a small income, unless you want the withheld taxes back.

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