1099 TAX MISTAKES

With tax season officially starting, we thought we'd share the top 7 1099 tax mistakes we see people make.

1.Misunderstanding the 1099 tax form

2.Not writing off all business expenses

3.Not keeping adequate records

4.Not paying quarterly taxes

5.Writing off personal expenses

6.Double counting expenses...let's break this down:

The most common culprit is car expenses. Most people use the Standard Mileage Rate ($0.56/mile for 2014). This rate includes gas, repairs and maintenance, lease payments, insurance, depreciation, and registration. Many people use the Standard Mileage Rate to write off their mileage, but then also write off individual gas or repair receipts (this is a separate method called the Actual Costs Method). This means you're double counting the expense! 

7.Thinking you pay much more in taxes than employees