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I have been helping a company make some generic updates/changes to their website for the last year. The overall total I charged was just a little over a 1,000. Anyways I forgot about the over $600 limit they have to issue a 1099, and well I got taxed to hell on those earnings. Basically $1,000 profit turned into $500 profit.
I know I can claim stuff against it to offset the balance but I don’t really have anything to claim (that I know of) Anyways I was wondering what everyone else does. I do not have an official business or anything, just myself as a individual.
So, what do you guys claim against a 1099 or would you recommend me creating a business? Are there any other suggestions you have or that you do personally?
Main reason, I like doing it, it’s easy and is some nice extra cash. But now not sure if its worth it because I’m getting half I what I charge over $600.
Thanks,
Jake
You wanna take home $1000 from a project, you gotta charge $2000. That’s just the way it is. Just one of the many things I don’t love about freelance work (and hence why I do very little of it).
Dang, well hopefully they will accept paying me double what they are now. Thanks for the info Chris.
Topic Solved
Have you purchased any electronics in the past year that have helped you? New Laptop, planner, phone, etc etc. You can get creative with things to write off (just be sure to consult an accountant).
Yea, bought a iPhone last year, but probably too late now. Could I claim it next year? I will have to contact my accountant and see what could qualify, thanks for those ideas. Maybe I need to buy some new equipment :)
Wow, thanks for the great info!