What A 1099-NEC Really Means

If you are being paid via a 1099, you have your own business.

You may not think of it this way, but that is how the IRS looks at it.

You need to act the part.

Open a separate bank account.

Deposit all of your income into this account, and pay for whatever business expenses you incur out of this account.

Is it easier to deposit your income into your primary checking account and pay for your business expenses along with your personal costs?

I’m sure, but that also makes it easier for the IRS to go after you if they audit your tax return.

Imagine trying to prove to the IRS the printer you purchased for your business was legitimate, while the transaction before it on your bank statement was your Disney World tickets and the one after it was the kayak you bought from Dick’s Sporting Goods.

Ya, not a good look.

It’s time to treat your business like a real business.

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