Dealing with Multiple W-2 and 1099 Forms

What is the best solution for someone with multiple W-2 and 1099 Forms?

You can probably do all this with turbotax or something similar. However, if you are really uncomfortable with the Sch C deductions, you may want to go to a pro. I find a lot of my new clients knew how to do it themselves, but just wanted the reassurance they did it right. Then I never see them again.

 

Dealing with Multiple W-2 and 1099 Forms

For student loans, you want form 1098-E, which will show your interest paid, which is deductible up to $2500 (in most circumstances)

The 2 W-2’s are just entered into the software directly. There is nothing tricky on W-2’s until your income exceeds the social security limits or if you are making 401(k) contributions to both companies and exceed the annual contribution limit.

 

Declared Business Income

The 2 1099-Misc are added together and declared business income on a Sch C. You can deduct any business expenses for that period (Tools, Mileage to and from the job site, a second mobile if it was used for business only during that time period, professional licenses, business insurance, etc.

Payments to your student loans themselves are not deductible, but any interest paid on the loan is.

Most of the free tax prep services will handle multiple W-2’s and student loan interest, but some of them will charge you if your return includes a Sch C. Check out the IRS listing of Free Filing vendors –http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free