1099

[1957horses]

Hey All my SP FAMILY,

I just wanted to let you know that if you have to claim money from doing surveys a 1099 because you went over the $600.00 mark, that when you do do your texas, you make sure that you put in a deduction for electric (you used to run your computer) The internet you pay a fee every month to use while doing surveys, even the cost of your computer.

We are our own boss, so we had to purchase these items in order to do surveys so that should be deducted as expenditures!!

Am I right or am I right!!

[Not-a-Sucker]

Yes, but... If you claim expenses as a home business, you can only use a portion of the electric, computer, internet, plus other home items, like taxes, etc. You had better be real sure that you can substantiate those numbers, because from what I have heard, home based businesses are usually under pretty high scrutiny. Opens up the door for audit more than any other business. Too many rules and regs on a home business. Would probably have to use a Schedule C (I think that's the self employed one) and then you would also have to pay the self employment taxes (social security and medicare).

To me, it's far more trouble than it's worth, unless you have an accountant you can get free advice from. Even then, it would probably cost you more in self employment taxes (15.6%) than you would save.

[idylatoo]

In order to make business deductions, you have to have a home office and there are strict regulations on these as well. It's far more trouble than it's worth unless you have a real at home business/job.