Wedding Photographers Forum - 1040-c very confused!!!!?

RSS

FAQ

Usergroups

Register

Profile

1040-c very confused!!!!?

Wedding Photographers Forum - Forum Index // Wedding Favors

Ingececycle

Joined: 13 Nov 2007
Posts: 24
Location: MA

Posted: Mon Feb 25, 2008 2:39 am Post subject: 1040-c very confused!!!!?

Your self employed selling wedding favors and you pay more to advertise than you made...ex. gross earnings 300, loss 950...do you include sales tax in the gross earnings?MY accountant never put it in line 23, he directed me to the state and said i need a tax id????I owe 30 in tax/...he keeps telling me to go to the state, he does not know

InfawayInpunk

Joined: 30 Jan 2008
Posts: 28
Location: Brazil

Posted: Mon Feb 25, 2008 12:03 pm Post subject: 1040-c very confused!!!!?

Sales taxes that you receive are never included in gross earnings. They are public trust fund monies. They go into a liability account -- Sales Taxes Payable -- when you receive them. This is zeroed out when you render them to the state.If you sell items at retail you are required to register with the state to collect and render sales taxes. Your accountant is correct on that.Form 1099-C is for cancellation of debt. That is included in your income unless you were insolvent at the time of the cancellation. Your accountant can assist you with that determination and prepare Form 982 for you if you qualify under the insolvency rules.Since you have an accountant you really should be directing your questions at him. He knows your situation better than anyone.

	Wedding Photographers Forum - Forum Index // Wedding Favors	All times are GMT - 5 Hours
Page 1 of 1

Jump to:


	You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum