What is a 1099 NEC and Who gets one

 

 First let's start by addressing the name change, a 1099-nec and 1099-misc are not the same thing however until 2020 the 1099 misc was used for reporting non- employee compensation where as now the 1099-NEC is used for this purpose.

 Now that we have that all cleared up who gets a 1099- NEC?   Any individual not on the payroll on a contract to complete a project or assignment, who was paid more than $600.00

So in plan English what this means is if you made an individual more than $600.00 to do graphic design, social media manager, design your website, update your SEO, ETC,   and they are not an S-corp or C- corp you would issue them a 1099- NEC.

Do you have to have a contact? NO, this is just a way of saying that you agreed on a task and price, however they are not an employee because you did not provide set hours or specifications on how they must complete this task.

Do you have an affiliate program ? If you paid one of your affiliates more...

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35 Tax Deductions for Creative Business Owners

 

35 Tax Deductions for Creative Business Owners

  1. Website
  2. Social media ad
  3. Business Cards 
  4. Signs for trade or craft shows
  5. Business license
  6. Permits
  7. Materials ( yarn, fabrics, Wax, T-shirts, vinyl, beads, etc)
  8. Canva subscription
  9. Photo shop subscription
  10. Business loan interest
  11. Equipment rental
  12. Space rental ( booth)
  13. insurance
  14. Legal consultation
  15. Accounting
  16. Continued Education
  17. Books for your business
  18. Office Supplies
  19. Postage
  20. Shipping Supplies
  21. Phone
  22. Internet
  23. Travel Expenses
  24. Wages paid to others
  25. credit card processing fees
  26. Listing fees
  27. Auto Expenses
  28. Banking fees
  29. Repairs to office space
  30. Business association membership dues
  31. Computer
  32. Gift for Customers (up to $25.00)
  33. Health insurance
  34. Software
  35. Business use of home (Utilities, property tax, insurance, mortgage interest)

 The important thing to ask yourself with any expense is.... Is this expense ordinary and necessary for your business ?   If the answer is YES you can deduct it, however if the answer is no to either set...

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