How to Claim 1099 Misc

Claim all deductions to offset 1099-MISC income.

A 1099-MISC is issued to a person, corporation, trust or partnership for revenues resulting from "nonemployee" income. If more than $10 in royalty income or $600 in payments is made during the tax year, a 1099-MISC is issued to the recipient from the company that paid the money out. Income recorded on the 1099-MISC must be recorded on tax returns in order for expenses to offset the income.

Instructions

1. Obtain the 1099-MISC which is sent out by the company that paid you. You must receive it by Jan. 31 in the year following the income. Call the company and request a second one if you have not received it.

2. Record the income on Internal Revenue Service Schedule C that accompanies a Form 1040 tax return. Enter the gross receipts of all 1099-MISC income into Line 1 on the Schedule C. Go through the worksheet to take all available deductions to offset the income and reduce your tax liability.

3. Enter the net income on Schedule C onto Line 12 on your Form 1040. Complete your tax return and include the Schedule C with your filing.

4. Sign and submit your tax return with a check for any taxes owed.

Tips & Warnings

• Partnerships, sole proprietors and s corporations will use a Schedule C with Form 1040. C corporations file a Form 1120 and record the revenue on Line 1 under gross receipts.

References

• Google Docs: IRS Instructions for 1099-MISC
• Google Docs: IRS Form 1120
• Google Docs: IRS Form 1040
• Google Docs: IRS Instructions for Schedule C
• IRS: Publication 583

Resources

• IRS: A Guide to Information Returns