All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎01-28-2017

1099 Schedule C

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I starting selling products for a company and they send out a 1099 Schedule C. I am trying to fill out my taxes but in order to file my 1099 I have to pay for the business program. My year to date comission is only $75, do I have to file it? I haven't even recieved my 1099 yet but I know they are sending them out this week.

Associate (Council Member)
Posts: 508
Registered: ‎01-31-2014

Re: 1099 Schedule C

mutamoon,

 

Have you tried to enter the $75 you earned as a comission on line 21 (other income) and have it be not subject to SE tax?

Since you made less than the threshhold for Self-Employment Tax (SE Tax) you would not be liable for that tax.  And,

entering it on line 21 would fulfill the requirement to report the income you made.

 

Good Luck!!

 

 

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Alumni Associate
Posts: 1,925
Registered: ‎12-13-2013

Re: 1099 Schedule C

As a side note, if your income was only $75, you may not receive a 1099-MISC for that amount. The payer is only required to issue a 1099-MISC if they pay more than $600 for the year.
WillMc1
Tax Professional (Retired)
Pioneer
Posts: 1
Registered: ‎02-09-2018

Re: 1099 Schedule C

Do we not need to file a Schedule C then if we didn't make the $600 threshold for SE? I am not getting a 1099 from my home based business because I did not make at least $600 in commissions.

 

My value of inventory at the end of the year was $302.50 (Retail). My cost of personal purchases was $164.88 (wholesale). Cost of inventory/goods purchased was $1525.56 (Wholesale). Total sales for 2017 was $2016.69.

Neighbor
Posts: 72
Registered: ‎01-12-2018

Re: 1099 Schedule C

The $600 is for the payer, if under $600 they do not need to send out a 1099. The threshold for SE is $400 or more of net income. You have total sales of $2016.69, you will need to file Schedule C.