Did you obtain a 1099-Ok tax type this yr? In case you’ve by no means seen this way earlier than and are uncertain what to do with it, don’t freak out — we will help you perceive your Type 1099-Ok and information you thru reporting any mandatory earnings.
How do I exploit my 1099-Ok when submitting my tax return?
TaxAct® takes correct tax reporting critically. That’s why we’ve spent a lot time and care optimizing our 1099-Ok reporting this yr. We’ve added extra detailed questions on what your 1099-Ok was for thus we will help pull the right tax varieties for you.
First, we’ll ask you for details about what varieties of earnings you’ve earned this yr:
As you may see from the screenshot above, Type 1099-Ok seems in multiple place — sometimes, this way is used for individuals who are self-employed, function a aspect hustle, or promote private objects on-line. You possibly can additionally obtain a 1099-Ok for actual property leases and royalties or farming.
In case you acquired a 1099-Ok for items you offered as a interest, there may be additionally a 3rd choice, “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. In case you have multiple 1099-Ok, we’ll undergo them separately. It’s attainable you possibly can even have a number of companies on a single 1099-Ok — if that’s the case, we will help stroll you thru that course of as effectively.
Realizing what the funds have been for helps us decide whether or not you owe taxes on that earnings. Based mostly in your solutions, we’ll assist you accurately report the earnings and enter any bills to cut back your quantity of taxable earnings, if relevant.
Right here’s an instance query:
This might be time to say that not all of the transactions in your 1099-Ok are essentially taxable earnings. Type 1099-Ok solely exhibits the gross quantity of all of your fee transactions, whilst you solely owe taxes in your web earnings. As an example, in case you offered a private merchandise at a loss, no earnings could be acknowledged on the sale, and, subsequently, no earnings taxes are owed.
TaxAct will assist you determine 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 overview what you instructed us (proven under). At this level, you’ll be capable to return in and edit or add to every part if mandatory.
After that, you’re finished together with your 1099-Ok!
Predominant takeaways
In case you are a aspect hustler, self-employed, interest vendor, or somebody who sells used private objects on-line, you possibly can obtain your first 1099-Ok this yr. If that’s the case, realizing what this way is and easy methods to use it’s important.
TaxAct makes the reporting course of as simple as attainable. While you file with us, you may relaxation straightforward realizing we’ll information you thru it step-by-step.