This will be my first time to file an IRS report for my income tax from my online job. I couldn't believe I earned that certain amount of money til I saw it on the email from somebody doing the 1099 form. Oh well it is mandatory to do so I have to file it soon. I am willing to pay whatever it will cost me though because its just the way it is here in US.
Anyway, I did some research online on how to file it and heres what they say:
Internal Revenue Service Form 1099-MISC shows money paid to you during the course of the year but not by an employer who was withholding tax on your behalf. According to IRS.gov, the 1099-MISC form also includes the total amount of royalties and rents that you received during the year. If you received income that exceeds $600 in a calendar year, you are required to file the 1099-MISC forms with your personal federal tax return.
Review each 1099-MISC form that you received. Make sure that the reported funds are accurate. Double-check each 1099-MISC that you received from each company for errors. Report any errors to the company that issued the 1099-MISC.
Prepare a Schedule C if you received 1099-MISC forms from multiple companies that you consistently work for. Use the income that is listed on line 7 on your 1099-MISC forms for the Schedule C. List the 1099-MISC income on line 1 of Schedule C. According to IRS.gov, expenses associated with generating this income--such as advertising, office supplies, auto expenses and insurance--are included in Part II of Schedule C.
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Source : eHow.com