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Form 1099

1099 - Reporting Requirements

Answer:

To report your income and expenses from your 1099 activity, use Schedule C: Profit or Loss From Business, which is then attached to your Form 1040 (your personal tax return). You must also complete Schedule SE to calculate your self-employment taxes if your net profits from your business exceed $400 for the year.
As a self-employed 1099 income earner, you are responsible for the self-employment tax on top of your regular tax on your net profits. The 2013 SE tax is 15.3%.
You can deduct ordinary and reasonable business expenses against your 1099 income. So you are only taxed on your Net Profit, not your total 1099 income.
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Answer Provided by: CPAdirectory

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