What are 1099 Deductions?
1099 deductions are tax-deductible expenses that can be used to reduce taxable income. A 1099 form is issued by an employer for any work done by an independent contractor of self-employed person. This form is also used to record additional payments that are included in taxable income, but are not related to earned wages. This can include car mileage or other expenses. There are three types of 1099 deductions that can be claimed when filing your income taxes: business expenses, home office and transportation. This type of income is related to self-employment income. As such, the business expense associated with this income must be reported on a Schedule C or Form 1040. The net taxable income is the difference between your taxable income and 1099 deductions. This amount is reported on line 13 of the 1040 form. When filing your income tax return, you are still eligible to claim all the standard deductions. This includes personal amount, age, dependents and other personal deductions. One o
