Hey Abe! I am a lease/owner operator and I’m planning ahead for the 2022 tax season. I will receive a 1099-NEC, but I also have some W-2 income from a company job. How many different returns will I have to file?
Great question, and I am glad to hear you are thinking ahead! Let’s start with the good news: if you are running under a Single Member Limited Liability Company (LLC) or as a sole proprietor, you will only have ONE filing for all of your earned income. On your 1040, you will see your “Salaries & Wages” from your W-2 income and your “Business Income/Loss” from your 1099.Reporting income will heavily depend on how you file each year. Take a glance at this brief guide on Filing Status:
- Single – This is for taxpayers who are not married and filing as single individuals.
- Head of Household – Generally, this is for taxpayers who are not married but are claiming one or more qualifying dependents (contact us for qualifications!).
- Married Filing Joint – The taxpayer and spouse file jointly on one return, and all income is reflected on one return.
- Married Filing Separate – The taxpayer and spouse file income on separate returns (States may have different reporting requirements, so we’ve got you covered!).
It is never too early to plan. Don’t hesitate to contact Abacus with questions about the upcoming tax year! You can reach us at 417.380.5000, firstname.lastname@example.org.