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Old 06-28-2005, 06:07 PM
aephi alum aephi alum is offline
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Join Date: Jul 2001
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If I were you, I'd talk to an accountant.

Any time a client pays you more than (I think) $600 in the course of a tax year, they are supposed to issue you a Form 1099 by the end of January of the following year. When you file your taxes, you include these forms.

If a client fails to issue a 1099, or pays you so little that a 1099 is unnecessary (as with this client), if I were you I would report the income anyway, just in case you are audited. The IRS tends to frown on unreported income. (BTW, if a client should have issued you a 1099 and didn't, the IRS penalizes them - not you.)

Over the course of the year, you may have to pay quarterly estimated taxes. Your accountant can help you figure out how much to pay so that you're not left with a huge tax bill (and penalty fees) in April and so that you're not overpaying. You probably won't have to pay a lot since we're talking about a few hundred dollars.
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