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Old 05-06-2019, 04:33 AM
 
Location: Ohio
177 posts, read 30,248 times
Reputation: 67

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Quote:
Originally Posted by MissmamaAnnie View Post
So, is it legal not to claim it, and are the tax refunds I get back from the write-offs going to amount to more than the income tax? If the benefits are small to claiming it, I'd rather avoid hassle and not claim it
The FED's have done away with the Personal Exemption, the Standard Deduction is now 12,000.00 for single filing status. To claim such work expenses as you outline, you must Itemize, if you don't, you can't claim any.

If your Itemized deductions are not more than the SD, forget it.

https://www.irs.gov/taxtopics/tc501


Itemized State returns I imagine are the same? Your Federal Gross is always your State gross also.
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Old 05-06-2019, 05:09 AM
 
Location: Tucson/Nogales
17,370 posts, read 21,218,356 times
Reputation: 24195
My first partner, back in the 70's, worth over $10 million, used to brag that he never paid taxes, his biggest expenditure was tax consultants, like most rich people.

I'm gathering that the income is not sizeable enough to hire a tax consultant, so to be safe, I'd report it.
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Old 05-06-2019, 06:25 AM
 
3,899 posts, read 2,740,705 times
Reputation: 7177
Yes you have to claim it.

You would file a Schedule C which allows you to take off mileage related to this work and that would reduce your net income from the 1099.

If you earn over $400, you'll also need to pay Social Security on this income.
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Old 05-06-2019, 07:59 AM
 
Location: Southern New Hampshire
7,216 posts, read 12,651,511 times
Reputation: 21945
Quote:
Originally Posted by LTU2 View Post
The FED's have done away with the Personal Exemption, the Standard Deduction is now 12,000.00 for single filing status. To claim such work expenses as you outline, you must Itemize, if you don't, you can't claim any.

If your Itemized deductions are not more than the SD, forget it.

https://www.irs.gov/taxtopics/tc501
NOT CORRECT!! You are confusing deductions that people take for health care costs, mortgage interest, misc. "regular" job expenses, etc. (that's what your link is about), with deductions that independent contractors can take on Schedule C, Profit or Loss from Business. The Schedule C expenses would be things like mileage, which could add up since the OP is doing a paper route.

OP, report it, and report all your expenses, which will reduce the taxable income from that job.
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Old 05-06-2019, 08:30 AM
 
Location: Dallas
206 posts, read 62,111 times
Reputation: 272
In the OP's description it sound like they're not saying you don't have to file. They're saying it's none of our business.
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Old 05-06-2019, 09:44 PM
 
2,404 posts, read 683,329 times
Reputation: 3379
Will they file a 1099?

If yes, then you MUST report it.
If no, then they're telling you the truth.

So, are you going to make more than $600 this year?
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Old 05-07-2019, 02:10 AM
 
6,943 posts, read 3,855,193 times
Reputation: 14761
Of course the company the OP is working for will file a 1099. If the guy is delivering newspapers the publisher is showing the delivery company as an expense for them therefore the delivery company will be showing the OP and his counterparts as business expenses for them and documenting it with the 1099.


The OP needs to document all his miles and all his car expenses to include fuel, repairs and insurance because he will need this information in filing his Schedule C. The company he works for may not care if he shows the income and expenses on his taxes but be assured they'll be showing theirs.
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Old 05-07-2019, 04:22 AM
 
12,289 posts, read 15,181,947 times
Reputation: 8100
If you fail to report income there are penalties if caught, if you dont get caught your income will be lower and it may affect Social Security benefits.
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Old 05-09-2019, 08:46 PM
 
Location: Vallejo
14,057 posts, read 16,063,174 times
Reputation: 12630
Quote:
Originally Posted by MissmamaAnnie View Post
I just got hired for an early morning paper route and was told that as such, I am considered an independent contractor. They further said that whether I claim the income or not is up to me.
Is it true that I dont have to claim the income? They said if I did, the benefit would be I could write-off my car, fuel, supplies, and a few other things. Obviously, if I dont claim it, I don't pay tax on it.

So, is it legal not to claim it, and are the tax refunds I get back from the write-offs going to amount to more than the income tax? If the benefits are small to claiming it, I'd rather avoid hassle and not claim it

Someone pls advise which is the better option.
It's up to you whether you want to commit tax fraud. I mean, you can double check with the contractor who you're contracting with. It sounds like what he's saying is he's fine committing tax fraud and won't file a 1099 as required if your earnings are over $600.
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