1099 Income on Schedule I
My question involves bankruptcy in the state of: CA
I will be filing Chap 7 soon.
My income is all 1099 commission and I haven't made any estimated tax payments for 2008 as yet. When I complete schedule 'I' (Current Income of Individual Debtor), how do I show my net income? Do I show what the taxes would have been, and then show the net "after taxes"? Do I attach a note stating the facts about not paying the estimated taxes yet?
Any assistance you can provide would be much appreciated.
-Barry
Re: 1099 Income on Schedule I
If your income has been reasonably steady from 2007 through the present, you can use the information from your most recent tax return (presumably your Schedule C), dividing by 12 to get a monthly amount.
If your income is more variable, use the average monthly net income from your business over the past three months.
In either case you must attach a detailed statement of your income. (You can use your Schedule C, if applicable).