Jerry is a carpenter who provides services to many different contractors. Which

Question

Jerry is a carpenter who provides services to many different contractors. Which of the following is true?
His records are likely to be his only source of his income
His income must be verified with additional documentation before tax professional can complete the return.
He probably received Forms 1099 Misc from the contractors for whom he provided services
He cannot claim EITC for income earned as a sole proprietor unless he provides 1099-Misc to attach to return Jerry is a carpenter who provides services to many different contractors. Which of the following is true?
His records are likely to be his only source of his income
His income must be verified with additional documentation before tax professional can complete the return.
He probably received Forms 1099 Misc from the contractors for whom he provided services
He cannot claim EITC for income earned as a sole proprietor unless he provides 1099-Misc to attach to return
His records are likely to be his only source of his income
His income must be verified with additional documentation before tax professional can complete the return.
He probably received Forms 1099 Misc from the contractors for whom he provided services
He cannot claim EITC for income earned as a sole proprietor unless he provides 1099-Misc to attach to return

Explanation / Answer

HERE THE CONCEPT UNDER DISCUSSION IS THE THE INCOME FROM SELF EMPLOYMENT. THE INDEPENDENT CONTRACTORS WHO DO NOT WORK UNDER A PARTICULAR COMPANY AS AN EMPLOYEE BUT WORK AS INDEPENDENT CONTRACTORS.

ANY PAYMENTS MADE TO THE SERVICE PROVIDER/CONTRACTOR IS REPORTED UNDER THE FORM 1099-MISC only if the payment is above $600. If the payment is below $600, then they will not be handed out the form 1099. so it is not necessary that he may recive the form 1099 from all he provided services to.

the ETIC ,IS THE TAX REFUND THAT which is claimed by employed individuals it can also be claimed by people working as self employed . ETIC reduces the taxes paid or provides you with a refund if the income earned falls below a specific level or when the tax payer has a family with children dependend on the income of the self employed. As the income earned by self employed is generally reported in the form 1099- Misc, it should be below a specific level to be eligible for the EITC, with form 1099 MISC ATTACHED to claim for it.

THE 4TH STATEMENT IS TRUE.

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