Volunteer Training 2006 Tax Year

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Volunteer Training 2006 Tax Year
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Self-Employment

• Earnings reported in box 7, 1099-MISC.
• Received cash payments for work performed.
• Screener reviews documents for 1099-MISC, but
  Preparer must ask about income not reported on
  1099-MISC.
• Income from jury duty, as a medical subject, or
  Americorps is not self-employment. (Report on
  line 21)

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Who should prepare the return?

• Tax Clinic
• Income of 1,500 or less
• Schedule C-EZ cannot be used if there is a net
  loss (more income than expenses). Use Schedule C.

• AAM Midway Office
• Income between 1,500 - 50,000
• More than one business
• Daycare in home
• Inventory
• Depreciation of assets
• Business use of the home
• Paper carrier
• Rental income

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Refer to paid professional

• Income over 50,000
• LLC, incorporated, partnership
• Cab driver
• Clergy member
• Business with employees/workers

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Expenses

• Mileage
• Supplies
• Office supplies
• Cell phone ( used for business only)

• Advertising
• Insurance
• License fees
• Legal professional services

• To make money, you have to spend money!
• If taxpayer receives EITC due to self-employment
  income and no expenses reported, the IRS may hold
  refund for review.

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Mileage for Schedule C-EZ

• Commuting Miles
• First miles driven to the first business site
  and the last miles driven back to home.

• Business Miles
• Any miles driven between first and last miles of
  the day.

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Business Use of the Home

• Used exclusively regularly for administrative
  or management activities of their business and
• Had no other fixed location where they could
  conduct administrative or management activities.

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