Tax 1099 Question Please Help
I have provided services for a real estate transaction where i have provided a seller with a buyer and now i will receive my check. I got a call and said I will be added to the hud at closing. This will be a 1099. Where i will have to pay taxes at the end of the year correct?I have done a little research on 1099 but have never done it before. I believe my name will not be on any documents or anything, but not sure and what is the total process for this. please help me out on this one.
Anytime you are paid a total of $600 or more for your services, the payor should issue a 1099-MISC for the amount you were paid.
All income is taxable by the IRS. Your transaction fee is not taxfree. By the way, your name will probably appear on the www.HUD-1.to document how the proceeds of teh sale were dispersed. The settlement agent that gives you the 1099 will also send in a copy to the IRS on your behalf.
Or are you asking how to report it on your return? It would be shown on a Sch C and all realated expenses can be deducted from it. Your net income will have additional self-employment tax of approximately 15%.