Should I claim a home business?

Not if you made less than $600.
You don’t have to declare that, as far as I know.
But, I’m not the IRS.

One of the “flags” (so I have been told) for the IRS is deductions for a home based business…..e.g. deducting a portion of your mortgage, electric, etc.

I have been advised that unless you exclusively use a portion of your house, etc. for business, it is not a good idea.

I am surprised you got a 1099 for only $26. Most of the time they don’t bother unless it is over $600.

@fireside You are supposed to declare everything you make….it is just that the person that paid you isn’t required to send you and the IRS a 1099 unless the amount is over $600.

I thought it was odd they sent it too and it is a PITA since my taxes are normally uncomplicated LOL This opened up a whole can of worms for me… joy.joy.

@Daethian Well….I finally started using a CPA. It is totally worth every penny.

I think if your taxes are fairly straight forward, then Turbo Tax or comparable is great…..anything a little dicey and it is time to see a pro.

When I first moved to New Jersey, my accountant told me I didn’t have to file if I made under $3000.00 for the year. I had only worked a couple of months that year and made a little over $2000.00. It was my understanding that if you are owed a refund, you don’t have to file. Two years ago, I didn’t file until July, and had no penalties.

When I had my own business years ago, I made a mistake in hiring a no so hot accountant who said I didn’t owe anything.. but she also neglected to tell me that I should have paid into social security. HUGE mistake, because now, since I didn’t pay in for those 5 years, I am not eligible for disability if I am unable to work. So I think your best bet is to hire a reputable account for advice, just to be on the safe side.

Doing your own taxes is ok unless you are in doubt about this type of thing. It’s easy to make a mistake that the software doesn’t catch. It’s better to pay the extra, and have a live person to ask about such things.