Question...my fiance and I drove expedite last year and we're paid on a 1099 to our business name. All deposits went into our business account and we paid ourselves from there. Question is because we are not married until next month, how do we each file under the same 1099? Do we split it? We only Expedited the last few months of the year if it makes any difference. Any help?
Tax help!
- Thread starter JENNANDDUSTY
- Start date
This really is a question you should be asking your accountant.
Wish I could be of more help. Good luck.
runrunner
Veteran Expediter
Ragman is correct.
Me thinks since the 1099 is in a company name you will file 3 returns. 1 for company, and 1 for each of you,but don't listen to me get an accountant.
RLENT
Veteran Expediter
What type of legal entity is your business ?
Corporation, sole proprietorship/dba, etc. ?
runrunner
Veteran Expediter
Sounds about right.
I'm thinking if you are a sole proprietor leased on to your carrier and the 1099 is just in your name, you should be able to split the income by you writing her a 1099 for the amount you want to show paid to her. Being still single, you both have to file separately of course.
I'm thinking that if they're not married, and they're proprietors, they're not sole. It's a partnership. OP said "our business name."
Sent from my DROID RAZR using EO Forums mobile app
RLENT
Veteran Expediter
What it actually is depends on whether they've ever actually taken any formal legal steps to create a business entity.
Hard to say really, without more data from the OP ...
zorry
Veteran Expediter
If they weren't married then, but are
now, or soon will be, it's easy to surmise that they were " soul-mate" proprietors.
It'll take an expert to figure this one out.
Last edited:
I would have to know what type of Entity you are, Sole Proprietor, LLC, Corp, Partnership, or "S" Corp before I can advise you what you have to do. Whoever the 1099 is made out to, you are still going to have to make one out to the other person for there half of the gross revenue, and then each one can split the expenses. it would depend on upon the vehicle you own also, the current owner who is the company takes the depreciation on it, and all the other expenses can be split. Please give me a call or email me directly so that I can advise you properly 704-739-4039*- or email me directly at [email protected], [h=1]Franklin Katz, RTRP, ATP, PA, PB[/h][h=1]Frank's Tax & Business Service[/h][h=1]315 E. King St.[/h][h=1]Kings Mountain, NC 28086[/h][h=1]Local # 704-739-4039 Toll Free# 877-857-1040[/h][h=1]E-Mail: [email protected])[/h][h=1]Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services[/h][h=1] [/h][h=1]IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
[/h]
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
[/h]
wvcourier
Expert Expediter
Im about buy a new van, andmaybe put driver in my old van. Will I have to add thier income to my Gross? Can I deduct the mileage from both vans? Or would it be better just to sale it? I really dont want to get myself into somthing turbotax cant handle.
Sent from my SPH-L900 using EO Forums mobile app
Sent from my SPH-L900 using EO Forums mobile app
Last edited:
It's always a good idea to consult with an accountant. I would sell the van(sell the headache). But if you want to try, here are links with info that will guarantee more headache and confusion, lol.
What You Need to Know About Hiring Independent Contractors | LegalZoom
Form 1099 - What is Form 1099 and How to Report 1099 Data on Your Tax Return
http://taxes.about.com/od/businesstaxes/qt/1099-Misc-Reporting-for-Miscellaneous-Payments.htm
Last edited:
Im about buy a new van, andmaybe put driver in my old van. Will I have to add thier income to my Gross? Can I deduct the mileage from both vans? Or would it be better just to sale it? I really dont want to get myself into somthing turbotax cant handle.?????
if you plan on putting a driver on, and pay him out of your settlements, You better have a written contract between you and the driver. This will specify what the specifications of what you will pay for and what he is responsible for. Normally if you hire a driver this will be the breakdown of how the contract will read. It would depend on what you want to do: Do you want to pay for fuel, tolls, or do you want the driver to pay them, he is the way it usually will work. based on 1. Owner pays for Repairs, Maintenance, Tires. Liability Insurance, and Satellite ( Qual-Com). (1) Driver pays for Fuel, Tolls, etc. Split is 60% driver/40% owner, if you as an owner then it is reversed 40% driver/60% owner or it could also be 35%/65% of your settlement check and his loads. The 1099 that you receive will include the total that you will be paid for both vehicles. You in turn will have to keep accurate records of his amount that you pay him weekly. Then at the end of the year you send him a 1099MISc for the Gross that he made on your truck, You have to report it as income and then you report it as an Expense as a Contractor expense. I do not use Turbo Tax, and I really do not recommend it. Right now the IRS will be watching closely a Self prepared Sole Proprietors returns, and one is the transportation industry. I know there are a lot of you drivers using it, but be for warned They are watching the Standard Mileage Deduction, and the Per Diem in Cargo Vans closely. So if your audited your on your own. The average CPA/EA Audit help is roughly $200 per hour and up.. that is if they did not do the return. If they did the return roughly $125 to $ 200 per hour. there is no flat fee. for an IRS audit, So your records better be true and accurate to prove the deductions.. You yourself cannot use the standard mileage for both vehicles, if the driver will be paying for fuel. he would be the one that will be able to deduct it. he would still get the per diem. I would suggest have a professional do your taxes, if you really do not have the time, cause there might be something that you would miss using the over the counter software, By the time you spend the amount need to purchase the business edition of turbo tax, and doing the return which based on the IRS timeline, is roughly 4 hours. for a 1040, Sch. C, SE, no itemized deduction. and if you are a husband and wife team, you must fill out 2 Schedules "C" Profit/Loss from business or profession. So if you do not want complication's, Sell the Van, or trade it in, and stick with turbo tax. Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
if you plan on putting a driver on, and pay him out of your settlements, You better have a written contract between you and the driver. This will specify what the specifications of what you will pay for and what he is responsible for. Normally if you hire a driver this will be the breakdown of how the contract will read. It would depend on what you want to do: Do you want to pay for fuel, tolls, or do you want the driver to pay them, he is the way it usually will work. based on 1. Owner pays for Repairs, Maintenance, Tires. Liability Insurance, and Satellite ( Qual-Com). (1) Driver pays for Fuel, Tolls, etc. Split is 60% driver/40% owner, if you as an owner then it is reversed 40% driver/60% owner or it could also be 35%/65% of your settlement check and his loads. The 1099 that you receive will include the total that you will be paid for both vehicles. You in turn will have to keep accurate records of his amount that you pay him weekly. Then at the end of the year you send him a 1099MISc for the Gross that he made on your truck, You have to report it as income and then you report it as an Expense as a Contractor expense. I do not use Turbo Tax, and I really do not recommend it. Right now the IRS will be watching closely a Self prepared Sole Proprietors returns, and one is the transportation industry. I know there are a lot of you drivers using it, but be for warned They are watching the Standard Mileage Deduction, and the Per Diem in Cargo Vans closely. So if your audited your on your own. The average CPA/EA Audit help is roughly $200 per hour and up.. that is if they did not do the return. If they did the return roughly $125 to $ 200 per hour. there is no flat fee. for an IRS audit, So your records better be true and accurate to prove the deductions.. You yourself cannot use the standard mileage for both vehicles, if the driver will be paying for fuel. he would be the one that will be able to deduct it. he would still get the per diem. I would suggest have a professional do your taxes, if you really do not have the time, cause there might be something that you would miss using the over the counter software, By the time you spend the amount need to purchase the business edition of turbo tax, and doing the return which based on the IRS timeline, is roughly 4 hours. for a 1040, Sch. C, SE, no itemized deduction. and if you are a husband and wife team, you must fill out 2 Schedules "C" Profit/Loss from business or profession. So if you do not want complication's, Sell the Van, or trade it in, and stick with turbo tax. Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
Last edited:
I have heard this and am well aware of this trend among expediters. Beware!
Sorry all, There are going to be a lot of Audits in our business this year, I have heard from a couple of drivers, who I did not do there returns, and they wanted me to help them with the Audit. They did there returns with Turbo Tax. Tax Act, Tax Cut, which are the 3 major over the counter tax software' s , I told them since I did not do there return, I cannot help them. they would have to contact a CPA, or EA, or anyone who can represent them before the IRS, I can only help them if I did there Return. Most of the time you Independent contractor want to do your own tax returns to save $$$$, and sometimes in the long run it going to cost you $$$$$$$$$$. The online version does not allow you to do business returns properly or if any, online is strictly Single, Married, Head of household/with children with itemized deduction, interest, unemployment, pension distributions, even though they do make a business edition, but it really doe not do the transportation industry properly. If you get one of those nasty letters, and you did your own return, you are basically on your own with the audit, unless you contact a CPA/ or EA to help you , and your looking at roughly around $200.00 and up per hour. If you let a professional prepare your return, he can help you explain and prove why you took the deductions. Naturally there well be a charge, it is not included with any tax professional in there fee for the preparation of the return. So it is up to you to decide whether it is worth the $80/$90 to purchase the OTC software and get audited, or spend the preparation fee for added protection. Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
Last edited: