If you have independent contractors that provide services and are not corporations, you’re required to complete a Form 1099 for each one that you pay $600 or more to in a year.
In the past, the law has been a little less certain for people without businesses who owned real estate. There was no penalty for them if they didn’t prepare the Form 1099s, so some people skipped doing this.
Now, there is a big reason WHY you want to make sure you prepare Form 1099s.
If you don’t, you’ll miss out on the 20% income deduction.
This is the Section 199A deduction that was new starting 1/1/2018, as part of the Trump Tax Plan (Tax Cuts and Jobs Act).
It’s a great gift, provided you qualify. And yes, you real estate income may qualify too.
But not if you don’t prepare Form 1099s.
I’ll talk about that and more as we explore what it takes to legally claim independent contractor status for your workers, and why that may be a good idea.
And, we’ll also look at how the law changed 1/1/2018, so that maybe it’s not such a good idea anymore. In some cases, having employees instead of independent contractors can actually mean LESS tax.
If your tax strategy hasn’t gotten updated in the last year, you’re probably paying too much in taxes.
It could be a few hundred, or even a few thousand dollars of extra tax.
Year after year.
The IRS isn’t going to call you and tell you what you did wrong. They’re just going to take your money.
It’s up to you (and your tax advisors) to tell you where the tax breaks are now and make sure you’re up-to-date.
That’s why I do the twice monthly coaching classes. I want YOU to be informed. The more you know, strategize about and implement, the less tax you pay.
What does less tax mean for you?
Not worrying about making the house payment? Taking a vacation? Paying for college tuition? Or maybe it means saving for retirement or building a nest egg.
It’s your money.
The question is how long before you take what’s yours and put it to work for you and your family, in the way you want.
There are several ways we can help. The most affordable is to join our coaching class. Go to https://www.ustaxaid.com/coaching-program/
For a private consultation, go to LINK
Or you can become a tax client. Give Richard a call at 888-592-4769 or drop him an email at Richard@USTaxAid.com.