Tax Question?

[baswm]

I did a side job through a friends company where he did not take out any taxes. I received the 1099 form from him for the total amount of work that I performed. I have receipts totalling around $1600 for the parts that were used on the job. I do not want to pay income taxes on the 1600 that was for parts. The 1099 form has the income plus parts amount. Is there a form that needs to be filled out to deduct the 1600 from the amount on the form and then pay income taxes on the amount left??

 

[Kizzy]

Use a Schedule C, business form.

You list the income as the 1099 amount, from that you can deduct the tools/parts, milage, any other expenses, and it will allow you to carry the loss (if you have one on your 1040). Business income or loss is line #12 on the 1040. Be sure to report the income. The IRS will have you for lunch if you don't report it.

Now if you pay social security tax on the income, be sure to deduct 1/2 on the front of the 1040, line 28. You will need a Schedule SE if you show a profit.

 

[baswm]

Thank you for the info. I will down load a schedule C and see what is involved.
I would have done it through my normal work so taxes could be taken out but they(the company) would not let me charge double time since it was a side job for a different building. So, I have a friend who has his own fiber optic company let me do the work through him and he billed the customer and gave me a check for the total amount due. Now I have to pay the income taxes and perfer not to pay income tax on the parts.

 

[blacklabman]

Sounds like schedule C-EZ would work for you.