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aedean
Joined: 10 Oct 2004
Posts: 46
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 Posted: Fri Feb 04, 2005 5:55 am Post subject: 1099 Form Tax Question |
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I have been receiving 1099 Form from some of my affiliates sites and want to do my taxes. I have do not have a business entity and everything is paid to myself. Also this year my expenses (ads, web hosts, etc) are more than my revenue, which actually allows me to report less income and pay less taxes. Is this legal?
Also do I need a business entity to report expenses to my so called business? |
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JKulp42757
Joined: 24 Oct 2004
Posts: 64
Location: MO
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| Posted: Fri Feb 04, 2005 6:49 am Post subject: |
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| Quote: | | Also this year my expenses (ads, web hosts, etc) are more than my revenue, which actually allows me to report less income and pay less taxes. Is this legal? |
Yes! Get all the dedections you can. Tonight, I just got the tape measure out to measure my office space for deduction. |
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AllanGardyne
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Joined: 02 Jul 2003
Posts: 6126
Location: by the beach, Australia
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| Posted: Fri Feb 04, 2005 10:28 am Post subject: |
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aedean, If you click on Profile and tell us which country you're in, that would be handy. I wouldn't attempt to answer a tax question from someone who doesn't live where I live.
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robertb
Joined: 09 Aug 2003
Posts: 1838
Location: Columbus, OH
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| Posted: Fri Feb 04, 2005 1:31 pm Post subject: |
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If you're in the US, you'll need to complete a Schedule C to take the loss. You can't do a Schedule C-EZ because you can't take a loss on that form.
Also, you'll need to check out the Schedule SE. I don't believe you'll need this if you're claiming a loss, but it never hurts to check.
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aedean
Joined: 10 Oct 2004
Posts: 46
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| Posted: Sat Feb 05, 2005 4:34 am Post subject: |
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I live in the United States, thanks for the great info. I have one more question if you please because I do not have a business entity, meaning everything is paid to myself.
Am I still allowed to take deductions (rent, home office, advertisment), I am wondering because I'm not sure how to fill this out when doing a my taxes online with Turbo Tax. |
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robertb
Joined: 09 Aug 2003
Posts: 1838
Location: Columbus, OH
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Debs
Joined: 16 Aug 2003
Posts: 4296
Location: NY
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| Posted: Sat Feb 05, 2005 11:23 am Post subject: |
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I use Turbo Tax too, it's great. Yes, the Schedule C is a subform of the 1040 ... 1040 is the long form individuals use to file taxes here in the US. You will just put your name on the Sch C and SS #, then complete it.
You can take deductions for anything business related that you spent; plus a portion of your home expenses that relate to the square footage of your "office." That's if you qualify for the office use deduction, it's a bit strict. You can also deduct (via depreciation) your computer if its use is dedicated; internet services, advertising, purchasing ebooks and software related to your business, etc.
Turbo tax will walk you through the process once you tell it you have your own business.
Debs
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mike929
Joined: 23 Jun 2004
Posts: 172
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| Posted: Sat Feb 05, 2005 8:09 pm Post subject: |
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| Quote: | | ...I do not have a business entity, meaning everything is paid to myself. |
I'm wondering what the standard practice is for affiliates. Do you legally file documents with the federal and state govt to declare your activities as a sole proprietorship or just attach the schedule C to your return?
Unless you are incorporated or have employees to pay, I don't see why it would be necessary.
thanks,
mike
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robertb
Joined: 09 Aug 2003
Posts: 1838
Location: Columbus, OH
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| Posted: Sat Feb 05, 2005 9:19 pm Post subject: |
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| mike929 wrote: | Do you legally file documents with the federal and state govt to declare your activities as a sole proprietorship or just attach the schedule C to your return?
Unless you are incorporated or have employees to pay, I don't see why it would be necessary.
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The Schedule C IS for sole proprietors. I'm not aware of any docs you must file to declare yourself as a sole proprietor, other than your Schedule C with your 1040 annually.
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mike929
Joined: 23 Jun 2004
Posts: 172
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| Posted: Tue Feb 08, 2005 9:02 pm Post subject: |
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Thanks for the clarification Robert.
I was referring to any sort of business license or permit.
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robertb
Joined: 09 Aug 2003
Posts: 1838
Location: Columbus, OH
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| Posted: Tue Feb 08, 2005 9:53 pm Post subject: |
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| mike929 wrote: | | I was referring to any sort of business license or permit. |
I figured that's what you meant.
If you ever start to dropship or sell products directly, then you'll need to contact your state gov. to get the appropriate licenses to collect and remit sales tax. But until then, ya have nothing to worry about.
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mike929
Joined: 23 Jun 2004
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