Did you obtain a 1099-Ok tax kind this 12 months? When you’ve by no means seen this type earlier than and are not sure what to do with it, don’t freak out — we may help you perceive your Kind 1099-Ok and information you thru reporting any essential revenue.
How do I exploit my 1099-Ok when submitting my tax return?
TaxAct® takes correct tax reporting severely. That’s why we’ve spent a lot time and care optimizing our 1099-Ok reporting this 12 months. We’ve added extra detailed questions on what your 1099-Ok was for thus we may help pull the right tax types for you.
First, we’ll ask you for details about what sorts of revenue you’ve earned this 12 months:
As you possibly can see from the screenshot above, Kind 1099-Ok seems in a couple of place — sometimes, this type is used for individuals who are self-employed, function a facet hustle, or promote private objects on-line. You could possibly additionally obtain a 1099-Ok for actual property leases and royalties or farming.
When you obtained a 1099-Ok for items you bought as a interest, there’s additionally a 3rd possibility, “actions not for revenue,” as proven under.
As you undergo our 1099-Ok reporting course of, we’ll ask you complete questions on your fee transactions and who despatched you the 1099-Ok. If in case you have a couple of 1099-Ok, we’ll undergo them separately. It’s attainable you might even have a number of companies on a single 1099-Ok — in that case, we may help stroll you thru that course of as nicely.
Understanding what the funds had been for helps us decide whether or not you owe taxes on that revenue. Based mostly in your solutions, we’ll enable you accurately report the revenue and enter any bills to scale back your quantity of taxable revenue, if relevant.
Right here’s an instance query:
This could be time to say that not all of the transactions in your 1099-Ok are essentially taxable revenue. Kind 1099-Ok solely exhibits the gross quantity of all of your fee transactions, when you solely owe taxes in your internet revenue. As an illustration, if you happen to bought a private merchandise at a loss, no revenue can be acknowledged on the sale, and, subsequently, no revenue taxes are owed.
TaxAct will enable you resolve which transactions are taxable and which aren’t based mostly on the data you present.
After you’ve entered all of the relevant transactions out of your 1099-Ok, we’ll evaluate what you informed us (proven under). At this level, you’ll have the ability to return in and edit or add to every part if essential.
After that, you’re achieved together with your 1099-Ok!
Essential takeaways
If you’re a facet hustler, self-employed, interest vendor, or somebody who sells used private objects on-line, you might obtain your first 1099-Ok this 12 months. In that case, realizing what this type is and easy methods to use it’s important.
TaxAct makes the reporting course of as easy as attainable. Whenever you file with us, you possibly can relaxation simple realizing we’ll information you thru it step-by-step.
