Help with tax deductions

[PrincessCooper's Mom]

Okay I usually do our taxes they are pretty simple. But this year I got 2
1099's for cleaning jobs(one is cleaning office and one was for house and yardwork. I am not sure what I can use as deductions. Also looking for other deductions not business related that maybe I am missing.

Would anyone mind sharing what they use as deductions?

Not trying to cheat just trying to make sure I claim everything I possibly can!!
I have a credit card to pay off and depending on what is left of refund decides if we get to go to Disney in September.

So please help!!!

 

[usnuzuloose]

With 1099 you need to pay taxes. Write offs are anything you supply the business with. If you bought cleaning supplies etc. It all depends how much you made on the 1099. You may want to consult a tax person to see if you need to pay or if you are under the limit for what you made.

We own a carpet cleaning co we write off mileage instead of the gas.
All the supplies or any mant work that needs to be done. A few years ago we lost two different vans and and all of it got wrote off.

Best thing to do is call a tax person and they will advise you so much better.

 

[sam_gordon]

As posted, you can write off whatever you used for the business. Let's use windex for example. If you bought a bottle of windex to use for this cleaning, that's deductible. BUT, if you bought the bottle of windex and used it for the paid cleaning AND cleaning your house, you're only supposed to deduct the amount you used for the paid cleaning. So if you bought a bottle and used 1/2 for the business and 1/2 for home (personal) use, you only deduct 1/2 the cost of the bottle.

Hope you have receipts.

 

[nchulka]

You can deduct all your mileage. Count every time you drove to and from the office/house. I work a part time seasonal job and get a 1099. I was told by my tax guy that if you receive a W2 you cannot deduct mileage, but with a 1099 you can. By the time I deduct mileage, I owe virtually nothing since the job is about 75 miles from my house round trip.

 

[sam_gordon]

Duplicate post

 

[pklein09]

While you may be able to write off expenses to offset income taxes, you still owe medicare and social security taxes that would normally be taken out on a W2. Make sure you have receipts and can verify all your expenses. This also includes mileage. You need a written account of where and when you drove, and the number of miles that particular vehicle drives in one year. If you've never done this before, you might seriously consider talking to a tax preparer to see what can be deducted and if you can complete the necessary forms yourself.

 

[PrincessCooper's Mom]

Thanks for all comments.

 

[SarahKate]

I am a small business owner who gets multiple 1099s.

Keep receipts for anything you bought for business purposes. Keep track of mileage - for clients you did work for AND when you actually went to buy your supplies. The other poster is correct that the things you claim have to be used for the business. If you have shared use, you claim that percentage. Mileage in 2010 was .50 per mile. This year it's .51.

Do you have a space at home that you use specifically for this purpose, like a home office? You can claim business use of your home. Figure the percentage of your home's square footage. Then you can calculate your mortgage, utilities, etc and multiply by that percentage. For me, it's a VERY small percentage, but every little bit helps.

Did you use your phone and internet for business purposes at all? Add up your bills for the year and multiply by the percentage you used the phone/internet for business purposes.

You can claim tax preparation as an expense.

As far as holding back some for taxes, social security, etc. it depends upon your situation. In my situation, my husband has a full time job outside the home. I get 1099s but also worked a "regular" job here and there last year where taxes were taken out. So far, I have never had to pay estimated taxes because my husband's withholdings have covered us well.

I would definitely recommend talking to a tax professional if you anticipate this becoming a regular thing.

 

[PrincessCooper's Mom]

Thanks SaraKate we have almost the same situation.

I and my husband work full time jobs and both cleaning jobs are extra.

One job we have yearly and the other job is either through realty company or foreclosure company to trashout and clean up houses coming out of foreclosure.

Everything that has been mentioned I have already looked at.

 

[usnuzuloose]

If you plan on getting more earnings you may need to set up quarterly payments for taxes. If your not sure how much a tax person can set that up for you.

 

[Cheshire Figment]

You may not need some of these, but you will need others.

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)