1099 Tax Preparation

Confused about how to file your 1099 on your tax return?

Examples of common types of 1099 forms

Each different type of 1099 may be taxed differently. I will go through a few examples:

1099-B from brokerages: These are normally for passive investments or active trading and produce capital gains. There are strategies to reduce these capital gains or have them taxed at a lower rate. Contact us for more information about that or if you need us to file your return with 1099-B income.
1099-DIV or 1099-INT: These are typically from passive dividend or interest investments. Even if the amount is small, you must report this on your return or you may receive an IRS adjustment notice.
1099-K from Crypto: If you have received this, the IRS will allow you to file it on forms 8949 and schedule D, which will allow you to bypass self-employment tax. This will also allow you to adjust your basis when reporting the sale so you are taxed only on your gains rather than on the full sale price. We are registered as Crypto Currency Accountants, so you can contact us for assistance.
1099-MISC or 1099-K from merchant accounts (otherwise known as credit card processors or e-commerce income): This type of income has the most flexibility in terms of deductions – taxpayers are occasionally given a choice by their employer to be paid on a 1099 basis rather than W2, and we always encourage it. You may receive a 1099-K or 1099-MISC if you are freelance, self-employed, own your own business, receive contract income, engage in e-commerce, rent on Airbnb, or for a variety of other activities. We will go into some more detail as to the benefits of this type of reporting & some of the available deductions below.

Tax Strategies for 1099-MISC or 1099-K:

More Write-offs

Filing as 1099s is a great opportunity to write off ordinary & necessary business expenses that you otherwise would never be able to write off as a W2 employee.

Mortgage & Vehicle Savings

1099s allow you to expense part of your rent or mortgage. They also allow you to expense business use of vehicle.

Pay Less Taxes

1099 income also provides an opportunity to take by far the largest deduction for income-heavy business - an SEP IRA. The maximum deduction is $56,000.

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“I was nervous of how i was going to catch up on 2 years worth of taxes, but I searched online and found George in the area. He handled my entire return remotely - that was my favorite part of the whole situation was not having to commute anywhere or meet an accountant to do my tax. He had me send in my W2 and 1099 and literally three hours later I had my taxes completed. It was by far the fastest, most seamless process when it comes to getting my taxes completed and removed a major weight off my back to know that they were finally done. His fees were very reasonable considering the situation - my finances were a complete mess and I basically dropped everything in a dropbox folder and he took it from there. My favorite part was that he was very responsive to emails and handled my questions right away. I am using him again for my next tax return and will be recommending to family and friends.”

My friend recommended George to me. My taxes were really complicated - I had W2s from three different employers and two 1099s. I also had student tuition payments, and had to file taxes in New York, New Jersey, and PA. This was my only my second time filing taxes and I did not even know what forms I was supposed to use. At first I tried filing on my own with Turbo Tax, but it showed that I owed like two thousand dollars. George not only made that go away, but he even got me a big refund. I was really happy and will definitely tell my friends at work to use him on their taxes next year. Thank you for all your help!

This accountant has helped me with my business taxes for 3 years now and I can't be happier. Service is immediate, even on weekends and holidays. Main staff (George, Nastia) reply to messages same-day and the turnaround time is staggering even during their busier season. What I like the best is their availability over text, which helps me as a business owner that travels frequently for work. I also like that the staff there knows their multi-state returns since I've had to report income from a couple 1099s elsewhere.

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