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I'm a self-employed private tutor. I earn less than $10,000 a year (standard deduction, not itemized).
After each tutoring session, I give a receipt to the students and keep a carbon copy.
I'm confused about three questions tor my 2015 federal tax return:
-- Do I need to include photocopies of the tutoring receipts with my 2015 federal tax return?
-- Do I need to fill out a 1099 form (information return) -- and which specific 1099 form?
-- If yes, should I send it with the receipt copies? Or just the 1099 and not the receipt copies?
I'm a self-employed private tutor. I earn less than $10,000 a year (standard deduction, not itemized).
After each tutoring session, I give a receipt to the students and keep a carbon copy.
I'm confused about three questions tor my 2015 federal tax return:
-- Do I need to include photocopies of the tutoring receipts with my 2015 federal tax return?
-- Do I need to fill out a 1099 form (information return) -- and which specific 1099 form?
-- If yes, should I send it with the receipt copies? Or just the 1099 and not the receipt copies?
Many thanks!
1. No. But keep your receipts in the event you are audited.
2. In theory, if any one student paid you more than $600, they should prepare and provide you with a 1099 MISC for your services. You wouldn't fill it out for yourself. Fast Answers About 1099 Forms for Independent Workers
I'm guessing you are preparing a Schedule C. The sum of your receipts for the year will be your income, which you can then offset by your legitimate business expense.
Thanks, MPRetired, for your helpful answer. It's exactly the information I was seeking. Yes, I'll keep my receipts. And, not needing a 1099, I'll be able to mail my return today. Done!
In theory, if any one student paid you more than $600, they should prepare and provide you with a 1099 MISC for your services.
It is not possible for any one student that might have paid more than $600 to provide the recipient in this case (the OP) with a 1099 MISC unless the OP:
Filled out and gave the student a W-9 form with either her Social Security number or business tax number on it.
The 1099 MISC form requires that information. One cannot be sent out to 01: the IRS and 02: the recipient without a tax ID number (business) or a Social Security number for an individual.
And it is in fact, just a 'theory' that someone should have to send a 1099 to someone else and/or a service provider if they pay more than $600 in one year to them. For example, in 2014, I paid well over $600 each to individual strippers and lack the ability to send any of them 1099 MISC forms because with names like Trinity, Savannah, Edyn and Paris (and without knowing their last names) combined with not having the required tax ID numbers or Social Security numbers for the 1099 forms, it kind of leaves me unable to follow through with it.
1099s are only issued by those operating a trade or business. Hence a family paying for tutoring, even if more than $600, has no obligation to issue a 1099 to the tutor. The tutor still has an obligation to report it as income.
HiLite, you only submit the tax forms but think of it like this, for every entry you fill in, what are you going to answer if an IRS agent asks "how did you come up with that number?". Everything that supports that answer should be retained with a copy of your return. That includes receipts or if you don't have a receipt, write yourself a note. Put it all in a manila envelope, write the year on it, and file it away. It is very unlikely you will be audited but you are prepared should an issue arise.
It is not possible for any one student that might have paid more than $600 to provide the recipient in this case (the OP) with a 1099 MISC unless the OP:
Filled out and gave the student a W-9 form with either her Social Security number or business tax number on it.
The 1099 MISC form requires that information. One cannot be sent out to 01: the IRS and 02: the recipient without a tax ID number (business) or a Social Security number for an individual.
And it is in fact, just a 'theory' that someone should have to send a 1099 to someone else and/or a service provider if they pay more than $600 in one year to them. For example, in 2014, I paid well over $600 each to individual strippers and lack the ability to send any of them 1099 MISC forms because with names like Trinity, Savannah, Edyn and Paris (and without knowing their last names) combined with not having the required tax ID numbers or Social Security numbers for the 1099 forms, it kind of leaves me unable to follow through with it.
It would actually be the law if it was part of your business. Eg, if you're paying for the strippers as a form of entertainment for clients. If it's just for your personal enjoyment you aren't required to.
It's generally a dumb law. There's clients I'd really rather not just give my W9, but usually those are the ones that aren't sophisticated enough to know they should be asking for it. I just don't do it. My reported income is generally $5-10k above what I have 1099s for, at least half of it I should be getting 1099s for.
And it is in fact, just a 'theory' that someone should have to send a 1099 to someone else and/or a service provider if they pay more than $600 in one year to them. For example, in 2014, I paid well over $600 each to individual strippers and lack the ability to send any of them 1099 MISC forms because with names like Trinity, Savannah, Edyn and Paris (and without knowing their last names) combined with not having the required tax ID numbers or Social Security numbers for the 1099 forms, it kind of leaves me unable to follow through with it.
This is really funny. I'm pretty sure I haven't given more than $600 to any individual stripper in a year, but I think of it as a gift rather than as a fee for service anyway, and the gift tax doesn't apply until you hit $14,000, which I most definitely will not do.
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