FAQ

Are both 1099 and 8949 Schedule D required for taxes filed for investments made from the same trading account?
Form 1099 (in its various incarnations) is an information return that the investment company sends to the IRS to report certain types of transactions. It doesn't necessarily include all of the information that you need to report on your return, although there will be information that the IRS expects to see on your return.Form 8949 and Schedule D are used to report dispositions of capital assets on your tax return. Form 8949 is used to reconcile amounts reported on Form 1099 with the actual gains and losses that you report on Schedule D.You generally don't attach Form 1099 to your return, although if you have a large number of transactions to report on Form 8949 you have an option to provide summary totals on Form 8949 and attach the Form 1099 (or equivalent statement) to your return.You don't have to file Form 8949 - although you still must file Schedule D - when you have a capital gain distribution (reported on Form 1099-DIV). You also don't have to file Form 8949 if all of your 1099-B and 1099-S have basis reported to the IRS for all transactions, you have no adjustments to make to the reported basis, and you have no nondeductible wash sales.
If I hire an independent contractor, can I deduct the taxes from the payment?
Yes the $3,000 is deductible business expense. If you are a Sole Proprietorship, as you meet the $400 net income filing threshold, you will need to file a separate Schedule C (or Schedule C-EZ) for the business and claim the income and expense on that. See Income Taxation of Sole ProprietorshipIf you have a LLC, S Corporation, or C Corp, claim the business expense and income accordingly.And yeah you need to issue Form 1099-MISC to the independent contractor you hired. Regarding what 1099-MISC is, how and when to file it, IRS instructions, etc., check here: Form 1099 MISC Rules & Regulations
Do you have to pay tax for selling on eBay?
If you are a US taxpayer, and you sell items on eBay on a routine basis, you are required to report your revenue from the sale of such items as part of a business return (e.g. Schedule C or C-EZ of Form 1040, Form 1120, Form 1120-S, Form 1065, or other form as appropriate to your tax status). You may generally deduct your expenses in producing and shipping those items, any costs you incur in marketing them (including eBay listing fees), and any other expenses that can be reasonably attributed to the process of acquiring, producing, or selling those items.If you only occasionally sell items on eBay (that is, you are not in the business of selling things on eBay) and you are a US taxpayer filing a personal income tax return, you must report the entire amount of what you received for whatever you sold as “other income” on Line 21 of Form 1040. Note that you cannot file Form 1040-A or Form 1040-EZ if you have taxable “other income” that isn’t from unemployment compensation or Alaska permanent fund dividends; there is no equivalent of Line 21 on Form 1040-A or Form 1040-EZ. Effective with tax year 2018, these amounts are instead reported on Line 21 of Schedule 1 of Form 1040.eBay does not send Form 1099-MISC because eBay does not process payments itself other than to collect its listing fees. Thus, eBay will never send you a Form 1099-MISC or Form 1099-K. If you use a payment processor such as PayPal, and you process transactions through that processor totaling more than $25,000 from 200 or more payors, that processor will send you, and the IRS, Form 1099-K, indicating that you were the recipient of the specified amount of funds. If your return does not, somewhere, reflect the receipt of those funds, the IRS will “correct” your return by adding the amount you failed to report as income. This will generally increase your tax and reduce your refund or increase the amount you are required to pay, and could result in penalties for underpayment or underprepayment of tax. In addition, if you claim the Earned Income Tax Credit, Child Tax Credit, or American Opportunity Tax Credit, and fail to report any part of your taxable income, you may be subject to additional penalties, and may also be banned from claiming these credits in the future.If you indicated to the payment processor you use that you are not a US taxpayer (by providing them with form W-8BEN or W-8BEN-E, in lieu of form W-9, when they asked you for a SSN), they will not file Form 1099-K with regard to payments to you, and you do not have to file a US tax return. However, they may file Form 1042-S instead, and may instead withhold “exit taxes” from payments made to you in accordance with the rules pertaining to transfers of US-source income made to non-US taxpayers. Consult a tax accountant for additional information.(Updated April 2019 to correct errors and reflect changes in forms for tax year 2018.)
Do I need a Form 1099 as a remote independent contractor and a non-US citizen?
A2A.The US company is supposed to request documentation from you that you are a foreign person who is not performing services for compensation in the US. You typically provide that information on Form W-8BEN-E when the company requests it, and you should attach a statement to that form confirming that you are not performing any services in the US. The company has to be able to document both of those conditions if the IRS questions whether the payments to you are taxable in the US.If the company knows that you are not a US person, and also knows that you are not performing services in the US, you will not get any sort of US tax form. If the company knows that you are not a US person but does not know that you are not performing services in the US, the company is required to withhold 30% of any payment made to you and file Form 1042-S to report the payments and withholding. If the company does not know that you are not a US person - for example, if you gave them a tax ID number for a US LLC - then you may get a Form 1099-MISC, depending on the information they have about you (the company is not required to provide it to a corporate entity but is required to provide it to an LLC that is not treated as a corporate entity).Note that the company can be penalized severely for not complying with IRS regulations on withholding on non-US persons. When in doubt, the company is supposed to withhold. So if you do get a US tax form, you should not assume that it's correct, and you should talk to a professional about your situation.
Will Uber send me the tax forms in the mail, the 1099 and a 1099-K?
IRS regulations generally require that when a taxpayer is required to file an informational return with the IRS, including Forms 1099-MISC and 1099-K, that taxpayer must “furnish” a copy of that return to the other taxpayer not later than January 31 of the year following the calendar year of the reportable transaction(s). The regulations ordinarily require that the form be mailed; however, the form may be delivered electronically (except for Form 1098-C, which must always be mailed) if the recipient has previously consented to electronic delivery and that consent has not been revoked.I don’t know if Uber offers electronic delivery of 1099 forms, but you can check your Uber account profile for any checkbox options (in whatever area of their profile that handles tax certifications) to see if you have an option to request electronic delivery of tax documents, and enable them if that’s what you want. Note that reporting taxpayers are not required to furnish copies electronically; they can always elect to mail the form.
What form do I use to pay my taxes when I make money as a freelancer?
The answer varies wildly on your country and how/if you have incorporated. I’m an engineer by training, but I’ve overseen tax filing for a few companies. All of them U.S. based C-Corps, but have been through the conversation of filing with LLC’s.If you’re in the U.S. and working as an individual, partnership or LLC filing as as partnership, you should receive a 1099 from your clients. With that information you’ll file a Schedule K-1 for the business income. Personally you’ll have to file Form 1040 as you normally would for your income tax filing.If you work through a C-Corp you will complete IRS Form 1120 (1120S if filing as an S-Corp). As an employee of the C-Corp or S-Corp, you’ll have income as indicated on your W-2 and will have to file Form 1040 for your individual income tax filing. You have to pay yourself a “reasonable” salary before taking dividend payments.If you didn’t incorporate, I believe you include income from the 1099-MISC on your Form 1040 but truthfully I’m not sure about that one.Hope this helps!
When is the deadline for employers to file Form 1099 with the IRS?
Employers generally do not file Form 1099 with respect to their employees. Form 1099 is used to report a wide variety of payment transactions, but it is uncommon for an employer to engage in such transactions with an employee. The main exception to this would be wages paid to an employee after the employee’s death; an employer must report wages paid to the estate or representative of a deceased employee on Form 1099-MISC.In the unlikely event that an employer is required to file Form 1099-MISC, or some other form in the 1099 series with respect to a payment to an employee, the form must be filed by February 28 (if filing on paper) or April 1 (if filing electronically), except when Form 1099-MISC is used to report non-employee compensation, in which case the form is due on January 31st. January 31st is also the date that Form W-2 (used to report wages) is due. If any of these dates falls on a weekend or holiday in a particular year, it is advanced to the next non-weekend non-holiday date.
I received a 1099 Misc tax form from my job. When is my deadline to file it?
You don’t file the 1099-MISC.If you are a contractor, report the income on Schedule C, and Schedule SE with your tax return. If you are an employee, and the income was also reported on W-2, then report it on Form 8919 with your tax return.