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I have a peculiar situation that has led me to avoid filing…

Hi, I have a...

Hi, I have a peculiar situation that has led me to avoid filing my tax returns for the last couple of years. I am a website developer for a company based in Panama. As part of my contract I set up a Paypal account in my name that they could use to process online payments. Now I have several years of 1099K forms showing all the income of that company under my name. I have a contract with them that shows that I operate the account for them and all funds are transferred to their company bank account. How do I process all this to file my personal tax returns?

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Answered in 1 minute by:
3/18/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,678
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

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Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there

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You'll just show the gross income on your schedule C (business income or loss) then report the money sent to them - along with your other business expenses - on the second part of the schedule C, (Part II Expenses.)

...

This will bring your taxable income down to only your profit in your business.

...

That profit (or loss) will then flow to line 12 of your tax return and add to (or take away from, in the even of a loss) any other taxable income on your return.

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Customer reply replied 4 months ago
OK I have just been operating as a sole proprietor, no established business set up. What return do I use?

schedule C (business income or loss) which is just a schedule (an add-on) to the regular tax return form 1040

...

If you do with, say, turbotax, it will ask you all of this and generate the appropriate schedules

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Customer reply replied 4 months ago
Thank you very much!
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You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

...

Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,678
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
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Thanks much

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