The whole game of tax planning here is to reduce that income by taking legitimate expenses that the IRS is offering you. They have told you. Track this stuff and we will let you expense it and pay us less taxes. Like they've given you that option. Don't be freaking lazy and let this go by and volunteer more money to the government. The first thing in this, particularly if you're new to this, you've got to change your mindset and you got to start thinking about, how do I knock this down to zero? And we're going to give you a list here. So if you need to listen to this later, open notes on your phone, write this down somewhere, we want to give you the hot button items you're going to start looking for. And then remind you of things you probably missed last year that you're going to do better this

year.

Welcome everybody to another episode of the Main Street Business Podcast.

We are excited today to talk about what millions of Americans are getting in the mail this month.

And that is the 1099.

Oh, damn.

I thought it was tax refund checks.

That might come later if you're lucky.

But now, the estimates are there are over 50 million side hustle workers in America.

They're saying one out of three American workers now have an extra source of income as a subcontractor, as a 1099.

And that people is a gateway drug to small business. And I love it. It is awesome. There's so many great ways to play with that 1099. You can hold it. You can pet it. You can play with it. You can save money with it. I mean, I just, I love it. Okay, Tommy boy. Yeah, we could, I mean, that's a nice thing about the 1099 is, like you said, it's the gateway drug to taking some ride off. So a lot of people are you seating at W2 and there's not much you can do with that. It goes on my 1040. Maybe there is some tax with help. On the 1099, a whole different ballgame, whether this is your first year driving Uber, you started a small business side hustle, whatever it is. Now you've got that 1099 that has income and nothing with health. So you've got to pony up some taxes and hopefully you've been preparing for this. But before you do that, make sure you're thinking about all the deductions you're going to be able to take on your tax turn because it's a totally different ballgame than when you get a W22 and you can't write anything off. We got a lot to work to do a lot of opportunity for you to save. Yep. So today's show, we want to go through the high-income earner that might be doing some consulting on the side and get a 1099 going, oh, what do I do with this? And they tell their account, and just throw it on my return and don't take a second thought. And then you've got these poor middle income Americans. And I say poor and I feel bad for you, working three jobs, trying to make ends meet, increased the cost of living in America off the chart, inflation, high interest rate, all of that, they're having to work this second or third job. What do they do with that 1099?

So everywhere in between, there's some techniques, some strategies here. This could be an incredible podcast for many of you to help share with a friend or family member and yourself, put more money on the table or in the bank, whatever food on the table. It's just, there's a lot of opportunity. Yeah. Now, on the other side of this for you business owners,

that employ contractors or that engage people that are providing services to your business or

you have an obligation to send out these 1099s. So $600 or more. Is that still the 2020?

Oh my gosh. Yeah. Yeah. I don't know. But I was just saying like we obviously so many of your business owners listening here on the mainstream business podcast is get yours done. I got mine done last week, which was nice to get done. This is a little early for me to get them done. I just want to like get a little credit here, a little proud moment for me. Got them out early. And so we're going to have up to January 31st to get these out. And I don't know if you want to get into the rules on then. And who gets them who doesn't. No, and we've covered this on prior shows.

Right now on my website, and if we could ask the producer to put this in the link right down below is I have an article in the last two weeks on the rules for issuing 1099s, who they get sent to. How do you handle the W9? When am I required to issue a 1099?

There's the 1099 NEC, the MIST, the int, the div. There's so many different 1099s in the mix. They're all there in my article. Check it out. But today's not about issuing the 1099. It's if I receive the 1099. And you know. I'm glad that you brought it up. Yeah, we got to say that because there's other people listening, like, oh, I got to get some 10 on nines out.

Okay.

All right.

So let's start with rule number one. Rule number one is even if you don't get a 1099, you claim the income you made in your small business. No, Mark, it was under the table. Oh, it was? It was under the table.

You mean if someone pays me in cash, I don't have to claim that. That's in the tax code. Yeah. Yeah. Oh, really. Yeah. When they come with the handcuffs, just go peacefully. You know, I don't want to get hurt. You know, when they shove your head in the back seat of the car, you know. Yeah. Yeah, by the way, when you use the words under the table, you're like exposing yourself to saying, I'm doing something illegal. Can you pay me illegally? Just pay me under the table. Like, don't say that. That is, I know so many people do it. Let's be honest. There's probably someone thinking it. But I think that's the big misconception here.

I just want to make sure everybody understands.

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