1099 - Reporting Requirements
To report your income and expenses from your 1099 activity, use Schedule C: Profit or Loss From Business, which is then attached to your Form 1040 (your personal tax return). You must also complete Schedule SE to calculate your self-employment taxes if your net profits from your business exceed $400 for the year. As a self-employed 1099 income earner, you are responsible for the self-employment tax on top of your regular tax on your net profits. The 2013 SE tax is 15.3%. You can deduct ordinary and reasonable business expenses against your 1099 income. So you are only taxed on your Net Profit, not your total 1099 income.
Note If you need professional help with "Form 1099" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.