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Ask The Experts: 1099 Forms, NASE Dues Deductibility

Monday, February 04, 2013

Q: I’m an independent graphic designer and occasionally contract with copywriters. In the past my expenses have not exceeded the $600 maximum, but in 2012 they did, so I need to set up a 1099. I have the writer’s W-9 form, but I don’t know where to go from here. I found a service by Intuit for $25 that will do the work and file it for me, but I’m sure there must be a way to do it myself. I use Sample Pay to help figure out how to fill out and file my 944, W-2 and W-3 forms, but don’t see that they offer a service for 1099s.

A: The completion of the form 1099 is very easy. There are certainly accounting software programs and services such as the one you mentioned to help with the filing, but you can also easily do it yourself. If you have a large number of them it might be easier to go the software route, but if you only have one or two, my recommendation is to simply complete them manually.

The only information that is needed for the Form 1099 is the recipient’s name, address, tax ID number and the amount that you paid them. All of this information (except payment amount) is included on the W-9 form that you have for each independent contractor. You will also need a form 1096, which is just a summary form showing the totals of all the 1099s that are attached. You can download a copy of the form 1099-MISC directly from the IRS website along with detailed instructions at irs.gov.

Note that the online form is for informational purposes only and should not be filed with the IRS. Instead, you can get the forms you need for filing at any office supply store such as Office Depot or Staples. You can also order them free from the IRS by calling 800-TAX-FORM.


Q: Can I deduct my NASE Membership dues on my taxes?

A: Yes, most of your NASE dues are deductible. The IRS does not allow the deduction of any business association dues that are related to lobbying efforts. The NASE certainly promotes the interests of small businesses in Washington, D.C. Thus, a portion of your dues must be considered lobbying costs. The NASE has determined that $17 of your annual dues are allocated to those efforts of promoting small-business legislative issues and therefore must be excluded from the deduction. So, the amount of your dues actually paid during 2012 less $17 will be deductible on your 2012 business tax return.

Keith Hall, NASE Tax Expert 

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