1099 deduction

1099 deduction

Who was Ducky built for?

Ducky was built specifically for the busy, on the go freelancer, independent contractor and solopreneur. If you are a 1099 individual, or just someone who wants to keep track of your hard earned dough, Ducky is your complete, mobile solution for expense tracking. Whether you are a real estate agent, Etsy seller, Uber driver, small business owner, or ninja-for-hire, Ducky is for you!

Which banks and credit cards does Ducky support?

Ducky syncs seamlessly with 29,000 financial institutions across the united states. This includes major banks like Wells Fargo, Chase, Bank of America, USAA, PNC, Chase, Bank of America, Citibank, Capital One, Fidelity, or American Express. It is very unlikely that we don't support your bank.

* Super Important Legal Notice: We don’t sync with the money you keep under your mattress.

Does Ducky show me my past transactions?

Ducky shows you your earnings and expenses from the moment you connect your financial accounts. Also, Ducky will show you past transactions from as far back as the bank allows us to. Usually that is 3 or 4 months prior.

Very soon you will also be able to manually enter past transactions so that you can organize the past and look to the future!

Does this replace my accountant? Who should I reach out to for tax related questions?

Of course not! Ducks don’t do taxes. Most ducks aren’t accountants. Ducky organizes everything so you never miss or forget a transaction. At tax time, with the click of a button, you can send your organized finances to your tax pro! In a nutshell we have a PHD in kicking Uncle Sam’s ass and keeping more of your money in your pocket. Also, if you have a CPA, our report will save them (and your wallet) hours of time doing your taxes. Studies have shown that since the launch of Ducky, millions of CPAs who bill clients tons of hours - have taken up duck hunting.

Is it safe to connect my bank account or credit card with Ducky? Tell me about safety.

Ducky has partnered with Intuit who owns Quickbooks and Turbotax. Intuit has been a pioneer for years when it comes to online security. As such we are held to bank level security standards. Syncing your bank account and credit card with Ducky allows Ducky to pull in your expense and earning transactions, so you don't have to manually enter in that data. Ducky uses bank level 2058-bit SSL encryption. Ducky was designed as a “read-only” program to pull in and organize all of your transactions, earning and expenses. This means that no one can move your money using Ducky, not even you :)

How do I export my financial data to my accountant, CPA or tax professional?

In the “Dashboard” section of Ducky, in the top right corner, you will find our “export” button. From this screen you will be able to export your full P&L, to any email address, from any date range you select.


Tax Deductions and Advice for 1099-Misc Independent Contractors

A few common occupations that receive a 1099-MISC are sub contractors, real estate brokers and insurance agents. Independent contractors who have their income reported on a 1099-MISC are considered self-employed by the IRS, and are responsible for paying their own taxes. To put it most simply, none of their taxes are withheld during the year.

This can be a double-edged sword for many independent contractors. For those with adequate tax knowledge, or access to a qualified tax professional, receiving a 1099 can actually be a good thing. But for those who are new to an occupation that reports income via the 1099, or believe they are a turbo tax expert, receiving a 1099-Misc can be a disaster at tax time.

In most circumstances, an employee’s (someone who receives a W2 by January 31) net wages have already had federal, state and payroll taxes withheld. Employee’s are not totally responsible for their own taxes, but an independent contractor is. The first thing that the self-employed has to do is pay their taxes quarterly. The total amount you have to pay quarterly is the smaller of these two numbers, either 100 percent of last year’s tax liability, or 90% of the current year’s tax liability. Failure to pay in enough throughout the tax year will result in an estimated tax penalty on your tax return.

The second and most crucial part of being an independent contractor is tracking your business expenses during the year. Taxpayers who receive 10&9’s are allowed to deduct their expenses from business activities just like a business owner can, in fact, some small business owners and independent contractors use the same form to report their income, a Schedule C.

The most important expense for independent contractors to keep track of are their auto expenses-namely business miles driven. The IRS allows taxpayers to deduct 50 cents for every business mile driven during 2010, the standard mileage rate cannot be taken in addition to actual vehicle expenses like gas, repairs, depreciation, and insurance. Independent contractors must decide whether or not they want to use actual expenses, or the standard mileage rate.

Something else that an independent contractor must take in to consideration in regards to mileage is the definition of business miles, not all miles driven are considered business miles. Miles driven from home to your office are considered commuting miles, not business miles. Miles driven from the office to your work site or appointment are considered business miles. And obviously miles that your drive while not at work are considered personal miles and cannot be deducted.For those who decide to use the actual expenses method, your deduction can be figured by totaling up your auto expenses and multiplying that number by the ratio of business miles driven. For example, if you drove 30,000 miles for the year, and half of them were business miles, then you could take half of your auto expense for the year as a deduction.

Other expenses that can be deducted from income for the self-employed include:

• Advertising expenses • Office supplies • Cost of uniforms/Equipment• Utilities• Insurance, • Interest paid• Legal/professional services • Meals and Entertainment Expenses• Lodging expenses

One last topic that independent contractors need to consider is the home office deduction. If you use a portion of your home exclusively for business purposes, you can take the deduction. This will enable you to not only deduct a portion of your living expenses, including rent/mortgage interest, insurance, taxes and utilities. The home office deduction will also allow you to turn some of your commuting miles in to business miles.

You can include commuting miles as business miles if you are a small business owner or self-employed person, and you have two offices or work locations: one outside the home, and one inside the home. You will need to fill out form 8832 in addition to a schedule C to correctly file the home office deduction.

The best way for small business owners and independent contractors to save money at tax time is to understand what they are allowed to deduct. An expense and deduction using an excel spreadsheet or QuickBooks is a good way to get started.

Like this post? Please share to your friends: