A community of 30,000 US Transcriptionist serving Medical Transcription Industry

medical transcriptionist - taxes? - Alice

Posted: Jul 09, 2012

I'm looking for information about what to do if you get a part-time job where you are not an employee, but make over $600 for the year, but they do NOT provide a 1099. This is a case of a man who is looking for my help in providing his transportation to medical appointments. He seemed clueless when I asked him about these options. Then, I was thinking. Well, when a contractor came to my home and installed a fence, I paid over $600, but did not provide him with a 1099. Is there some other option here for contractors? I guess the IRS would be the ones to contact, but I thought I'd start here.. I'm almost positive that my potential patient will claim his cost of my services on his taxes.

Your fence contractor likely - provided you with

[ In Reply To ..]
an invoice that detailed the work performed and the price paid. That is what his business will use for his tax records. It is not the same thing as being an independent contractor as an MT or individual provider of services. The man you helped with transportation should provide you with a 1099. There is probably information on the IRS website and maybe even forms there he can use. If not, there are probably websites that have the necessary forms.

it's up to you as a business owner - to track your expenses and

[ In Reply To ..]
income.

You should be tracking what you are paid and by whom and could enter it on your tax return w/o him giving you a 1099.

Taxes - Alice

[ In Reply To ..]
Thank you all for answering. If commonsense applies here at all, I think, like the fence contractor, that I should be able to do this without the customer providing me with a 1099. I certainly can provide invoices and keep copies for my records. I guess the issue is whether or not there is a law requiring him to provide me with the 1099, or if it is optional.

Why do you have to report it.... - anon

[ In Reply To ..]
With that small amount of money, why would you have to report it at all? For justification sake, basically you were providing a friend a ride to his doctor's appointments. Why should the gov't have their cut out of it? I know some people will balk and say this is dishonest...but really...is it?

yes, it really is - geesh

[ In Reply To ..]
Ethics much?

Reporting - Alice

[ In Reply To ..]
It is my understanding, if I make over $600, I need to report it. I have too many other problems in life than to even attempt to fudge on taxes, so that's why I'm trying to figure out how to do it correctly in this case.

you would just need to report it as income - sm

[ In Reply To ..]
Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer.

Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs

here is some good reading on that - sm

[ In Reply To ..]
Reporting Miscellaneous Income

FS-2007-26, November 2007

While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many donâ��t realize that they must also report most other income, such as:

cash earned from side jobs,
barter exchanges of goods or services,
awards, prizes, contest winnings and
gambling proceeds.
This fact sheet, the 18th in the Tax Gap series, will help taxpayers better understand miscellaneous income and what they are required to report as taxable on their Form 1040.

The tax gap, or the amount of taxes that go unpaid each year, results from taxpayers underreporting their taxable income. Fortunately most people want to pay their fair share of taxes and many simply need a better understanding of their obligations.

What is Taxable?

Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. There may be taxable income from certain transactions even if no money changes hands.

Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. This document discusses a few types of reportable income. Information on how to report other types of income can be found in Publication 525, Taxable and Nontaxable Income.

Self-Employment Income

It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.

All income earned through the taxpayerâ��s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.

Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income.

Thank You! - Alice

[ In Reply To ..]
This is exactly the info I was looking for. Thanks.

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