How To File Your 1099 Tax Form
As a promotional model, you’ll get a 1099 from the company that will report your earnings for tax purposes. Since you’re not on payroll, companies need to track what they pay out to non-employees for tax purposes and will do so with a 1099. This means you also need to report these earnings in your annual tax forms. As an independent contractor, you’ll need to file your 1099s if you receive more than $600 and will need to file your taxes a bit differently than a normal taxpayer who is on payroll would on their W-2.
But a positive to receiving a 1099 from companies rather than a standard W-2 is that you can claim deductions on your Schedule C, which is what you’d use to calculate your net profits from self-employment (your promotional hustle is your own business). But these deductions must be for business expenses, such as clothes, gas to and from jobs, etc. Basically, you can claim anything that is helpful for you to complete your work as a promotional model.
If your business expenses are $5,000 or less, you can file the shorter Schedule C-EZ, but if not you’ll need to go with the regular Schedule C form. But like any business, you’ll still have to pay taxes, such as Social Security and Medicare. But since your 1099 income isn’t subject to self-employment tax withholding, you’ll need to calculate and pay them yourself (which appear on a Schedule SE and must be attached to your tax return).
If you have a number of promotional jobs throughout the year, make sure that you record all of them so that you know who to expect a 1099 form in the mail come tax season. You don’t want to forget one! Also double check if all is correct, which is another reasons why you’ll want to make sure you have your own record of each job and how much you were paid.
About The Author
As an experiential marketing and event staffing agency, Chicks in Your Shirt knows the ins and outs of how to get your brand heard and seen through all the noise from competitors and other brands. We specialize in providing your company or event exceptional brand ambassadors and promotional models to help spread awareness about your company at trade shows, sporting events and any marketing campaigns or initiatives. With talent located nationally, we can handle projects and clients from all industries and sizes – there are no limits to what our staff can do for your campaign.