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If you receive a Form 1099-NEC reporting your income earned as a contractor, freelancer or other non-employee job, you'll typically need to report this information on Schedule C. You'll also include all of your eligible business-related expenses in support of your trade or business.
The good news for you as an independent contractor is that you can deduct many of your business expenses -- such as the cost of a computer, printer and other equipment you use in your work, plus the cost of work-related phone calls and mailings, office supplies, duplicating, advertising and business travel.
Steps to Completing Schedule CStep 1: Gather Information. Business income: You'll need detailed information about the sources of your business income.Step 2: Calculate Gross Profit and Income.Step 3: Include Your Business Expenses.Step 4: Include Other Expenses and Information.Step 5: Calculate Your Net Income.
You do not own a business in the typical meaning of the term. As description of the business, just enter your activity (for example: electrician, driver, consultant, etc...). The address of the business is your personal address.
When the service is performed in New Mexico, it is taxable. In general, maintenance contracts are either taxable at the time of sale or taxable at the time of service.
Computers you purchase to use in your business or on the job are a deductible business expense. If fact, you may be able to deduct the entire cost in a single year.
Independent contractors report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Also file Schedule SE (Form 1040), Self-Employment Tax if net earnings from self-employment are $400 or more.
Can I deduct a computer for my business? Yes, the self-employed can deduct the cost of a business computer. The same goes for any other business equipment you buy.
If you do not already have a Schedule C in your return, follow the prompts and enter the information about your work/business for which you received the Form 1099-NEC. Then continue through that section to Add Income and enter the Form 1099-NEC along with any additional income you received for that business.
If you are using it more than 50% of the time for business purposes, then you can deduct the cost of the computer. If you are using it for just personal reasons, then you can't. If you're using your personal computer part of the time for business, then you can deduct that portion on your Schedule A. Hope this helps.