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    0 Replies Latest reply on Nov 17, 2019 1:50 PM by nationwide68

    When your 1099 & K-1 forms start arriving in 2020

    nationwide68 Wayfarer

      The new year comes with new Tax Compliance issue.

      Every firm that you preformed  more than $600 of work for will be

      required by law to issue a 1099 -W-2 or K-1 to you and the IRS.

       

      Ignoring these forms will only cause you more money and trouble over time.

      The IRS is slow when is comes to enforcement, but we are in the computer times

      and with mandatory E-filing of these form finding you is almost a certainty, 

      and then the penalties and interest will be very severe.

       

      Remember, the 1099 & K-1 are for reporting gross earnings. Under the laws of the IRS

      you're allow to write-off any expenses incurred in producing these gross earnings.

       

      For .e.g. if you are a Uber driver, the cost of your car, insurance, gas etc are all expenses

      which can be deducted from your K-1 earnings and thereby reduce your taxes.

       

      Saving all your expenses receipts are a good start. They can be saved in a digital form

      which is now accepted by the IRS. The self-employed or freelance communities are always

      seeking ways to save, but when it comes to your Tax Compliance, getting professional help

      might pays for itself and save you money.