Posted by jojo_MN on 2/2/09 4:21pm
Msg #276287

1099's

I've only received eight 1099's so far this year. Is everyone else having the same problem? Hard to do taxes without them.

Reply by Linda_H/FL on 2/2/09 4:26pm
Msg #276288

You won't always get 1099's from everyone who paid you

for every signing you did - most aren't obligated to provide you with one. I just use my bookkeeping records - all invoices paid and all monies collected for general notary work (copy of my receipt book) in 2008 - to prepare my taxes.

Reply by Marian_in_CA on 2/2/09 4:30pm
Msg #276290

Usually, you'll only get a 1099 if you earned more than $600 from any given company.

And other companies won't 1099 you at all, depending on how you're set up in their accounting.

Reply by jojo_MN on 2/2/09 4:51pm
Msg #276293

Yes, I usually get 20-30 minimum. I've always had to enter each one into the tax return. I also have my ledgers to get the numbers, but like you said, I should have one for each company that I did more than $600 of business this year.

Reply by GA/Atty on 2/2/09 5:03pm
Msg #276297

I have never looked at 1099's to prepare my taxes n/m

Reply by VioCa on 2/2/09 9:31pm
Msg #276350

Re: I have never looked at 1099's to prepare my taxes

You should look at them and enter each one of them because if you take a close look on the Schedule C there are two lines first for gross receipts or sales (not reported on 1099) and the second line Income transferred from 1099-Misc. If the second line does not match what IRS has received from your customers it could be a red flag.
If you report all the income based on the deposits in your bank account you should be fine the only thing is that they may want to make sure of that and you do not want to go through an audit. It can be a pain.

Reply by VioCa on 2/2/09 9:38pm
Msg #276351

Re: I have never looked at 1099's to prepare my taxes

Actually I was wrong, it does show what I said in my previous post only if you edit the form in the tax program and not on the final form that has to be filed with IRS so yes, reporting the total income received during the year is good enough

Reply by Glenn Strickler on 2/3/09 1:33pm
Msg #276400

You should always check your 1099s to your records

to ensure that they match. More than once, I have had to have the issuer send a new one because they overstated the amount paid.

Reply by Sharon Taylor on 2/3/09 3:23pm
Msg #276425

I also check 1099s against my records

Most of the time they match, but I always have a few that show either a higher or lower total than my records. Believe me, I want my totals and the 1099 totals to match when I send my tax return to the IRS, or they-who-must-be-obeyed at IRS will be wanting to know WHY they don't match. Sometimes the company's records show they SENT payment to me before December 31, but I didn't RECEIVE it until sometime in January, and it's easy to reconcile...but not always.

Reply by JanetK_CA on 2/4/09 3:58am
Msg #276493

Re: I also check 1099s against my records

I think I'm missing something here. Disclaimer: I usually have a CPA do my taxes and plug in the numbers I provide in all the right places. [I just hate this stuff!] However, as I recall, my 1099s are not sent in with with my returns and nor itemized. [Is this wrong?] In fact, my CPA usually just takes a quick look at them and hands them back.

I thought we just entered a total number for gross earnings - and I always have lots of earnings to report for which I haven't received a 1099. For example, I can't recall ever getting a 1099 from a title company, since they typically pay out of escrow and each payment falls below the limit. Bottom line, I will be reporting much more income than the total the IRS will show I received, based on the 1099s I've been sent. So what are we matching?

Also, is it possible that some of the year-end differences can be chalked up to differences between using a cash vs. accrual method of accounting?

If I'm way off base here, someone please set me straight... Thanks.

Reply by thnotary_NY on 2/2/09 5:21pm
Msg #276303

Keep good records and you don't have to worry about 1099s.

Reply by Indy_Notary on 2/2/09 6:10pm
Msg #276313

Although I have only received 3 1099's so far, I still had my taxes done today. Keeping good records is the key. You only pay taxes on the moneys received that particular year. As long as the 1099 is not stating that you earned more than what you reported, will you have any trouble. Usually when I do receive them, after-the-fact, they match my records! This has been my experience.

Reply by JulieD/KS on 2/2/09 6:27pm
Msg #276316

It's not up to others to give you the information you require for doing your taxes. If you rely on 1099s, you may seriously under-report your income. Only businesses that paid you $600 or more are required to issue a 1099MISC.

I use my deposit book to verify against my Quickbooks report as to how much income I made and how much of it is notary income that is not self-employment taxable (although it is federal & state taxable). The 1099MISCs I receive are always just a fraction of my total signing agent income. They have no used for me in figuring my taxes; I keep them with my records.

Also, companies have until Jan. 31st to mail out W2s, 1099, 1098 etc. Give the post office a few days to get all these things to you. It's a good idea to give the mail ample time before efiling your tax return off to the IRS. If something comes in that you'd forgotten about, you'll have to amend your return (or hire me to amend it for you).
Have fun!

Reply by Les_CO on 2/2/09 7:06pm
Msg #276321

If you happen to be a Cabinet member, or potential thereof, or a member of the legislature….don’t worry about it. Plead ignorance (all too true) or arrogance (more than enough… thank you very much!) Pay/report your taxes when it’s convenient, or when you get caught. Let the little guy shoulder this enormous burden. Ha! Ha! Ha!.....Let them eat cake!!! Ha, Ha, Ha!!!!

Reply by Les_CO on 2/2/09 7:15pm
Msg #276325

$600.00 Oh no!!! Oh My! Oh My stomach hurts!!! Ha! Ha! ha! I just can't stop laughing!!! $600!!! Ha! Ha! HaHaHaHaHa!! How about $6000.00? Or $600,000,00..Or (more like it) $6,000,000.00 Ha! HaHaHa!!! What a Fu***** Country! Ha! HaHaHa!!!!

Reply by Alice/MD on 2/2/09 7:37pm
Msg #276328

Les, I feel the same as you. The arrogance of our legislative members to expect us to rise above them and pay our taxes.

Reply by Todd/OH on 2/2/09 7:39pm
Msg #276329

When I receive a check, I enter it into my Excel spreadsheet and it filters into income brackets. I probably won't get a 1099 from anybody.

Reply by OR on 2/2/09 7:56pm
Msg #276333

Re: 1099's----Gota love Quickens and Quick Books

Just plug in all the numbers as you go along all year. Then load up the newest and greatest Turbo Tax program,click import and Tax's done. Don't need the 1099 either, just add them the pile receipts for the year as they come in.

There is a lot to be said for a good accounting practices and a great accounting program.

Reply by Susan Fischer on 2/2/09 8:45pm
Msg #276339

oooh yeah, QweeksBooks...(I'm so mad at myself for

not getting the ~free~ QB a while back...<Bad Notary! No chocolate!>

"There is a lot to be said for a good accounting practices and a great accounting program. " So, so true.

Budgets and savings plans are good things, too.

Reply by MW/VA on 2/2/09 8:11pm
Msg #276334

They actually have until the end of Feb. to mail out 1099's, unlike W-2's that have to be out by end of Jan. I'm like you and use TurboTax. Even though you're supposed to enter each 1099, it doesn't show up that way on the final return anyway. I went ahead & e-filed my taxes yesterday, based on the income my records show. Until just yesterday I was under the impression the 1099's had to be listed. It is a P. I. A. to do all that, and I won't in the future, knowing I will keep them on file for back-up.

Reply by PAW on 2/3/09 12:31pm
Msg #276398

I believe you are mistaken. According to the instructions:

[quote] General Instructions for Forms 1099, 1098, 5498, and W-2G

When to furnish forms or statements. Generally, you must
furnish Forms 1098, 1099, and W-2G information by February
2, 2009. However, you may issue them earlier in some
situations, as provided by the regulations.
[/quote]

For 1099-MISC, there is a special instruction:

[quote] Instructions for Form 1099-MISC

What’s New
New due date for statements sent to recipients. The due
date for furnishing statements to recipients has been changed
to February 15 for statements due after 2008 if substitute
payments are being reported in box 8 or gross proceeds paid to
an attorney are being reported in box 14. For details, see the
2009 General Instructions for Forms 1099, 1098, 3921, 3922,
5498, and W-2G.
[/quote]