I have received only 1 1099-Misc report, how do I report this on my tax return? Can you please provide me with suggestions to save taxes on this amount reported on my 1099-Misc.

Thank you.

Dear Dreamiet,

There are only 2 options available to report 1099-Misc Income.

If there are no related business expense related to this 1099-Misc Income, than you have to report this amount on 1040 page 1, under Other miscellaneous income subject to S/E taxes.

Here you are out of luck and will have to pay the 15.3% S/E tax and have the income all be subjected to your regular tax.(marginal tax)

The other option available is if there are business expenses that are directly related to this activity, than I would report this 1099-Misc income on your schedule C listing the activity along with all the reasonable business expenses.

What would be reasonable expenses to claim is something you and your CPA must decide for your business, but examples of expenses that may be claimed include but not limited to the following;

Advertising,
Bank Charges
Auto expenses
Gifts promotions
Marketing
Membership dues
Seminars
Continuing Education
Special Tools
Internet Charges
Telephone
Cell Phone
Rent
Travel Expenses
Meals
Pension Plan.

These are generic expenses and you should exclude personal expenses from the above list of expenses.
The residual profit than is subject to S/E Tax and regular income taxes.