

Ask HN: Taxes and Consulting - weej

Hi HN,<p>I do not usually consult for pay outside of my full-time job; however, I helped out a buddy this year and did a little contract work (web development) on the side.  Thus, this is all new for me (consulting/taxes).<p>I got paid in checks directly from the company with no tax withholding (federal, social security, etc.).<p>What's the protocol for handling taxes in this case?  Should I contact the company to get their tax ID and file myself, or are they supposed to or required to create a W-2 for me?  Are there any additional IRS forms needed (federal level)?<p>Thanks in advance!
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cd34
You should get a 1099-MISC from them if the amount you earned was over $600.
They should have requested that you fill out a W-9 prior to this which is a
form that gives them your social security number (or federal ID number if
you've got a company entity).

However, it is possible you might not get a 1099 even if you're supposed to
receive one, and, you're still responsible for reporting it.

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weej
Very helpful. Thank you.

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brudgers
I am not an accountant, but I recommend including a schedule C listing the
income in your return. Just treat your business as a sole proprietorship. It
will probably take about 15 minutes using TurboTax.

Although, the company is required to File a 1099 with the IRS, if you don't
get a copy they don't suffer a penalty based on my research in 2003 (again I
am not an accountant).

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nikosdimopoulos
AFAIK, whatever income you get you are responsible for declaring it. You could
either declare it as Misc Income in your return or if this is a continued
relationship with the said company, they can issue a 1099 for you as a
consultant.

There is plenty of information on the IRS website regarding this.

I hope this helps.

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weej
Yes, it does. Thanks!

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weej
I completely forgot about the 1099-MISC. Thanks folks!

