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How do I report 1099-K income with OLT?

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Question
How do I report 1099-K income with OLT?

Answer

You need to file Schedule C if you earned income from your sole proprietorship (owned your own business, not a partnership or corporation), received a W-2 showing wages and expenses as a statutory employee, received income and deductions from qualified joint ventures, or if you received a 1099-MISC showing earnings in Box 7, or if you recieve a 1099-K Payment Card and Third Party Network Transactions.

You can file Schedule C using Online Taxes at OLT.com the easy way, as the tax software will walk you through the interview questions.

 

Schedule C form is broken up into 5 sections. Below you will find a brief explanation of each section.

 

Part 1: Income (this is where your 1099-K income is included)

The income section of the Schedule C is used to report and calculate your gross income from your business.

Report your gross receipts or sales from your business. Do not reduce this amount by any expenses. Expenses will be entered later and will reduce this total.  There is a place to enter your 1099-K income. 

You must also report as income amounts from bad debts you recovered, scrap sales, interests you charged customers on their account receivables, state gasoline and fuel tax refunds, prizes and awards, and other income related to your business.

 

Part 2: Expenses

You may deduct many expenses incurred by your business during the tax year. Some expenses that you can deduct include utilities, advertising, vehicle expenses, depreciation of property, and insurance.

Vehicle expenses can be deducted in two ways: actual expenses (if you have all of the proper documentation), or you may take the standard mileage rate. The standard mileage rate changes each year.

Depreciation of property can be taken to gradually deduct the cost of assets that will last more than one year, such as computers, vehicles, and other equipment that will last more than one year.

Business travel, meals and entertainment expenses that are deductible include lodging, transportation, tips, and other services necessary for business. Meals and entertainment expenses are only allowed to be deducted up to 50% of your total costs.

Pension and profit sharing plans are deductible, but only contributions you made for your employees are to be reported to Schedule C. Any pay-ins for yourself must be reported to Form 1040 instead.

 

Part 3: Cost of Goods Sold

This section you have to indicate which inventory method you chose and if you took inventory at the beginning of the year, or at the end of the year. May have to explain discrepancies if there is a major change in inventory from one period to the next period.

 

 

 

Part 4: Information on Your Vehicle

 

 

Part 5: Other Expenses

 

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Views: 877 Created on: Jun 15, 2013
Date updated: Nov 17, 2014

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