Page 2 of 3 FirstFirst 1 2 3 LastLast
Results 11 to 20 of 22
  1. #11
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Private Contractor (1099)

    Quote Quoting that1guyy
    View Post
    When it comes to CPAs what should I expect? I didn't track every mile penny which was just laziness on my part but I didn't think I would be doing this job for that long. Are they gonna tell me I'm screwed or tell me I'm wasting their time? I assume there gonna want receipts or bank statements and things of that nature? How do I prepare for going to get professional help to make things as easy and as quick as possible? In other words, what should I expect?

    Thanks
    Most tax professionals are going to take your word on your income and expenses, as long as you appear to have attempted to properly track them. In other words, if you come into the office with a piece of paper that properly and neatly outlines your income for the year (properly added up into one number) and properly categorizes your expenses (again properly added up by category) then they are going to discuss it with you and then pretty much take your word for it. They will warn you of potential consequences if you cannot back up your numbers in the case of an audit, but will pretty much take your word for it.

    Google "profit and loss statement" and/or "income statement" to get an idea of what kind of information you should provide and in what format.

    Unfortunately if you did not track your mileage, you may not be able to take the mileage deduction, which would be a shame.

  2. #12
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Private Contractor (1099)

    The IRS loves contemporaneous records (even if it's just handwritten entries in a notebook), however most reasonable accounting will fly. If you have a total mileage/cost for a year and a reasonable way of apportioning work vs. non-work use, or you have logs of deliveries made and you can derive the miles driven from that, etc...

    As TM points out that small business pub works well. There's also the IRS that covers the use of your vehicle https://www.irs.gov/pub/irs-pdf/p463.pdf

  3. #13

    Default Re: Private Contractor (1099)

    Quote Quoting adjusterjack
    View Post
    Maybe, but you must have kept, or have access to, some sort of record of the work you did for your clients. How did you get paid? How did you pay for gasoline, oil changes, maintenance? Did you keep receipts or invoices? Many repair and oil change shops put the odometer reading on your invoice. You can extrapolate a lot of stuff from those kind of records.

    BTW, you should have tracked every mile. These days there are probably cell phone apps that do it for you. If you are still doing that kind of work, figure out a record keeping system for 2020 that will cover everything.



    You don't prepare for them. You go see one and he/she will tell you what to prepare for the next visit. Then, whatever you prepare, you make copies for the tax pro. You don't turn your originals loose.
    Well, I have my bank statements I'm gonna go through and the company I contract with has an app that keeps track of what days I worked, how many hours scheduled, and when and how much they paid me. Guess I'll go ahead and say I deliver packages for Amazon using my personal vehicle.

    As for the mileage tracking apps, I started using one either at the end of last year or the beginning of this year but I always forget to start tracking within the app, as I'm not used to doing it.

    Forgot to ask, do they usually charge for the "first visit". I mean am I looking at paying anything just to ask a few questions? Overall, is this gonna be expensive for what I'm trying to do? Other than delivering for Amazon the only other income I had for 2019 was unemployment in the first half of the year.

    Really appreciate your replies, thanks!

  4. #14
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Private Contractor (1099)

    Quote Quoting that1guyy
    View Post
    Well, I have my bank statements I'm gonna go through and the company I contract with has an app that keeps track of what days I worked, how many hours scheduled, and when and how much they paid me. Guess I'll go ahead and say I deliver packages for Amazon using my personal vehicle.

    As for the mileage tracking apps, I started using one either at the end of last year or the beginning of this year but I always forget to start tracking within the app, as I'm not used to doing it.

    Forgot to ask, do they usually charge for the "first visit". I mean am I looking at paying anything just to ask a few questions? Overall, is this gonna be expensive for what I'm trying to do? Other than delivering for Amazon the only other income I had for 2019 was unemployment in the first half of the year.

    Really appreciate your replies, thanks!
    Is where you delivered part of the record you can access?

  5. #15
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Private Contractor (1099)

    How does Amazon pay you? By the piece? By the mile?

  6. #16

    Default Re: Private Contractor (1099)

    Quote Quoting PayrolGuy
    View Post
    Is where you delivered part of the record you can access?
    Not at all. Amazon does as little as possible in terms of helping it's contract workers. They are useless when it comes to us for the most part and the app is minimal as far as record keeping.

  7. #17
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Private Contractor (1099)

    Quote Quoting that1guyy
    View Post
    Not at all. Amazon does as little as possible in terms of helping it's contract workers. They are useless when it comes to us for the most part and the app is minimal as far as record keeping.
    Well, I can see many reasons they wouldn't keep such records. When you started this did you not think that the number of miles you drove doing the work might be a useful bit of info to keep at hand? All your expenses actually.

  8. #18

    Default Re: Private Contractor (1099)

    Quote Quoting flyingron
    View Post
    How does Amazon pay you? By the piece? By the mile?
    It's a set amount per hour. If they paid by the mile some of us would be billionaires.. Jeffy wouldn't want that lol.

    Quote Quoting llworking
    View Post
    Most tax professionals are going to take your word on your income and expenses, as long as you appear to have attempted to properly track them. In other words, if you come into the office with a piece of paper that properly and neatly outlines your income for the year (properly added up into one number) and properly categorizes your expenses (again properly added up by category) then they are going to discuss it with you and then pretty much take your word for it. They will warn you of potential consequences if you cannot back up your numbers in the case of an audit, but will pretty much take your word for it.

    Google "profit and loss statement" and/or "income statement" to get an idea of what kind of information you should provide and in what format.

    Unfortunately if you did not track your mileage, you may not be able to take the mileage deduction, which would be a shame.

    Thank you. Have any advice on choosing a "tax pro" or CPA? Should I just google one in my area? How do they charge? Flat fee? hourly? Is it typically expensive?

  9. #19
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Private Contractor (1099)

    Quote Quoting that1guyy
    View Post
    It's a set amount per hour. If they paid by the mile some of us would be billionaires.. Jeffy wouldn't want that lol.




    Thank you. Have any advice on choosing a "tax pro" or CPA? Should I just google one in my area? How do they charge? Flat fee? hourly? Is it typically expensive?
    Most tax pros are going to charge for the tax return based on what forms are included on your tax returns. A CPA might charge the same way or might charge by the hour. A Tax attorney would charge by the hour.

    You don't need a CPA or Tax attorney for this. You need an experienced tax professional. Call around to some local tax offices and inquire about fees for preparing a tax return with a Schedule C. Around here, if you have no children and therefore no extra forms due to children, that would cost somewhere between $250 and $300. I don't know what the average costs are in your area.

  10. #20

    Default Re: Private Contractor (1099)

    Honestly, I didn't think of anything but getting bills paid. at the time when I first started, I had multiple things I was going through that caused a lot of distraction and stress. Irresponsible on my part, I know but it is what it is. Looking to using Microsoft Excel to track from now on

    1. Sponsored Links
       

Page 2 of 3 FirstFirst 1 2 3 LastLast

Similar Threads

  1. Payment Disputes: 1099 Contractor Not Receiving Pay
    By Usafbordeaux in forum Independent Contractors
    Replies: 1
    Last Post: 11-22-2015, 12:09 AM
  2. Federal Taxes: Employer Wants to 1099 Contractor, not Contractor's S Corporation
    By danmassi in forum Tax Law
    Replies: 23
    Last Post: 04-24-2012, 02:51 PM
  3. Payment Disputes: Docking Pay from a 1099 Contractor
    By Coolbeans in forum Independent Contractors
    Replies: 2
    Last Post: 12-12-2011, 01:04 PM
  4. I Don't Think I'm Actually an 1099 Contractor
    By IT_GUY in forum Independent Contractors
    Replies: 2
    Last Post: 11-28-2010, 06:12 PM
  5. When Should An Independent Contractor Get a 1099?
    By hairfarmer in forum Tax Law
    Replies: 1
    Last Post: 01-10-2006, 10:30 PM
 
 
Sponsored Links

Legal Help, Information and Resources