<p>I'm so confused! I've muddled my way through the FAFSA and CSS Profile as best I could. DH is a self-employed contractor of sorts. His clients are worldwide and they download his free software application off the internet, but then purchase a yearly maintenence contract. The contract consists of nothing more than an invoice and a payment of typically $1500. It's basically a handshake deal. (I do not agree with any of this, but I get nowhere arguing with him about it.) We have received just ONE 1099 thus far for 2008. I really don't expect many (if ANY) more, especially since many clients are are not even in the US. </p>
<p>I know how much money he has received and I have reported this on the 1040, but there are no 1099's or W2's. So far, the US gov't has been okay with this. (No news is good news, right?) I have not officially filed our 2008 taxes yet, just filled them out. But IDOC wants the 1099's. What to do?</p>
<p>Okay, so I called the CollegeBoard people and explained myself. She said not to worry. If I don't receive the 1099's then they won't be required. (Seems oddly simplistic. )</p>
<p>Now, since I do have the ONE 1099 for $1500 from a client, do I send that one in or not bother with it at all?</p>
<p>So your question is whether or not you have to pay your 1099 for $1500? I think legally you're obliged to declare it, and since you got a 1099 from him, it means he already wrote you off as an employee, stating that he didn't make $1500 this year because that money went towards paying you. Now, how much you'd actually have to pay from this $1500? I think the number is like 33% or something like that towards taxes... so roughly $500 you probably owe for that 1099. These numbers won't really affect your FAFSA or CSS Profile however, the amount is far too unsubstantial.</p>
<p>The $1,500 fees are self-employment income, and will go on Schedule C (regardless of whether he receives a 1099 or not). The Schedule C is the evidence of income (or lack thereof).</p>
<p>No, No. I report ALL of DH's income on the schedule C. My point is that I don't have the 1099's to say where that income came from. Out of $76,000, he only has one 1099 for $1500. We will pay taxes on the entire $76K, rest assured. The gov't has been okay with this so far. It's IDOC that concerns me. So the schedule C is good enough for IDOC for proof of income?</p>