Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
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1099 Help

1099 Tax Preparation Help

Confused about how to file your 1099 on your tax return?

Examples of common types of 1099 forms

Each different type of 1099 may be taxed differently. I will go through a few examples:

1099-B from brokerages: These are normally for passive investments or active trading and produce capital gains. There are strategies to reduce these capital gains or have them taxed at a lower rate. Contact us for more information about that or if you need us to file your return with 1099-B income.

1099-DIV or 1099-INT: These are typically from passive dividends or interest investments. Even if the amount is small, you must report this on your return or you may receive an IRS adjustment notice.

1099-K from Crypto: If you have received this, the IRS will allow you to file it on forms 8949 and schedule D, which will allow you to bypass self-employment tax. This will also allow you to adjust your basis when reporting the sale so you are taxed only on your gains rather than on the full sale price. We are registered as Cryptocurrency Accountants, so you can contact us for assistance.

1099-MISC or 1099-K from merchant accounts (otherwise known as credit card processors or e-commerce income): This type of income has the most flexibility in terms of deductions – taxpayers are occasionally given a choice by their employer to be paid on a 1099 basis rather than W2, and we always encourage it. You may receive a 1099-K or 1099-MISC if you are freelance, self-employed, own your own business, receive contract income, engage in e-commerce, rent on Airbnb, or for a variety of other activities. We will go into some more detail as to the benefits of this type of reporting & some of the available deductions below.

Tax Strategies for 1099-MISC or 1099-K:

More Write-offs
Filing as 1099s is a great opportunity to write off ordinary & necessary business expenses that you otherwise would never be able to write off as a W2 employee.

Mortgage & Vehicle Savings
1099s allow you to expense part of your rent or mortgage. They also allow you to expense business use of vehicles.

Pay Fewer Taxes
1099 income also provides an opportunity to take by far the largest deduction for income-heavy business – a SEP IRA. The maximum deduction is $56,000.

Office Locations In Maryland

5100 Buckeystown Pike Ste 250, Frederick, MD 21704

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17 W Jefferson St Ste 007, Rockville, MD 20850

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Office Location In Virginia

7918 Jones Branch Drive, Ste 405, Tysons VA 22102

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Office Location In Texas

101 E. Park Blvd, Suite 600 Plano TX 75074

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)or Plano Texas

Phone toll free: (855) 557-2222
Fax: (240) 297-1054
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA, Collin County and Denton County, TX, Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

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