Yea, I know, doing my taxes now. And Im doing them myself on tax slayer, but I had a question. I am wondering if everyone filled out the 1099 Misc schedule B part of the tax forms. And which business code do I use? The reason why I am stump is because yes technically I am working for myself but technically I am getting paid by Clickbank. So the tax slayer help desk said to put it in the 1099 schedule B. Anyone know whats the right way for sure?
You do not work for ClickBank - they are simply paying you commission. I can understand the problem as you do not want to be taxed twice (i.e. ClickBank is billed for sales tax/VAT etc and the earnings (commission) you receive from them should not have any sales tax/VAT removed from it because the sales tax/VAT was already accounted for by ClickBank. The tax you would pay would be the standard income tax for whatever tax band your total taxable earnings fell into. I do not know if there is a business code for "commission" as that is the likely code you would use (the same code would be used for adwords earnings and any other affiliate network earnings). As I am not a tax specialist, this is not tax advice. However, I am not sure anyone on the forum can give you the right answer unless they have consulted a tax specialist in your country (I would think it is USA - whereas I am in the UK). So even if I gave you an answer, it may be different for your country. This link may help you a bit: http://www.hrblock.com/taxes/tax_tips/tax_planning/reading_1099.html
This tax year in UK is April 6th 2008 - April 5th 2009. If you are filling in your tax return, the paper version would need to be filled in by Sept 30th. If filling it in using the online version it would need to be completed by Jan 31st 2010.
So Im trying to understand what you meant. Clickbank is already taxed so I do not have to fill out a 1099 misc claiming all my earnings? Lets say for example if I made $5,000 in the year 2008. Would I put in that full amount into the 1099 misc form or would I put in another amount?
No. You would still need to state your full earnings, although the type of earnings you receive from ClickBank should not be liable to any Sales Tax or VAT as CB already accounted for that type of tax. You would still be liable for personal income tax on the level of taxable earnings accrued during the applicable tax year. I would echo the comment of contacting an accountant if you are unsure. It may also be possible to contact someone in the tax office to clarify things (not sure how things are set up in USA for clarifying tax issues prior to submitting tax returns).
I'm using TaxSlayer.com too. I just called their support number. The lady said that if we can't find a code that we think fits, we can just use the 999999 code at the bottom of their list. Here is a link to the page and the code: https://www.taxslayer.com/avalon/Income/SchC/SchCBusinessCodes.aspx 999999 Unclassified establishments (unable to classify) Business Code: 999999 Principle Business: Unclassified