If work for 2 companies as an independant contractor, how many profit/loss forms are completed for the IRS?
Saturday, March 20th, 2010 at
2:46 am
I worked for one company for 3/4 of the year and 3 months for another as an independant contractor doing the same type of work. I have 2 1099’s. Can I combine them & my expenses on one Profit/Loss Forms or must I complete 2?
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You complete a Schedule C for each business activity. For example, if you worked as a carpenter for two different jobs, and received two 1099s, both of them go on the same Schedule C.
From your information it appears you should do only one Schedule C, combining both the income and expenses from the 1099s.
You work for 2 companies so you are going to have to separate IRS forms for each company, unless they are combined.
If you ran one business, use one Schedule C. If you ran 2, file 2 Schedules C.
I do IT and tax consulting. 2 separate businesses, so 2 Schedules C.
You will submit 2 Sch. C’s and any profit or loss from business will carry forward on your personal return. don’t forget that you will also have to pay self-employment tax on any income $600 or more.
Assuming they were both for the same business of yours, you’d combine them on one schedule C. If for example you worked for one as a computer programmer and for the other as a roofer, you’d do two schedule C’s.
For same work you complete only one schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040.
combine on one form