1099 Excel Template [FREE]
Before we get into how to use a free 1099 excel template to organize your taxes...
Let me ask you something.
Did you know that according to a Pew Research Study published in 2013 about two-thirds of all people either dislike or hate doing their taxes? In the same study, nearly one-third of the people either liked or loved doing their taxes. First of all, who in the world “loves” doing their taxes? In what part of the country did they find those crazies?
Anyways, if you are normal like the two-thirds of the country you probably don’t look forward to Tax days as you might look forward to Christmas. Because, let’s be real, getting stuff from Jolly ‘ole St. Nick is much better than giving stuff to finger-pointing, grumpy Uncle Sam. The real reason I’m here is to help explain a 1099 excel template that has been provided by Keeper Tax in order to make filing your taxes less abhorrent and will most likely save you a lot of money in the end!
How To Use This 1099 Excel Template
Keeper Tax is an amazing tool that can help freelancers or small business owners like you stay organized and take the terrible-ness out of taxes! It is like Quickbooks self-employed but better. If you want to learn more about their services, you can read my review of why they are the best app to track receipts for taxes. While using Keeper Tax’s services they will automatically scan all of your bank statements and pick out what your business expenses are. At the end of the year they can compile all of your data onto a worksheet that looks like this:
Now I know that looking at this screenshot isn’t exactly like looking at the Mona Lisa. It’s actually way better. Have you ever seen the Mona Lisa? *cough cough* Overrated *cough cough*. First of all you have to pay to be surrounded by sweaty tourists and look at the smaller than a piece of paper Mona Lisa. Even if you don’t want to pay for Keeper Tax’s services, they provide this tool for free! You just have to enter data and fill it out yourself. So basically this is free and will save you money in the end. 1099 worksheet > Mona Lisa. Sorry Davinci, I said it. Now, let’s move on to how this will help you in the end.
How This 1099 Template Spreadsheet Works...
This free 1099 template gives a few suggestions on what can be potential deductions for your freelancing endeavors (make sure you make a copy of the excel file). As you can see in the “Schedule C Category” column you have a variety of different categories. These are all deductible expenses in your everyday business quests. Do you pay for advertising? You get a deduction. You travel to meet a client? You get a deduction. Visit an office supply store? We all have a meal and talk about business? Why should I answer that when I can let Oprah do the honors:
Thank you, Oprah. Now that you have the tax categories figured out let’s move on to a different column. The “Total Tax Deduction” column is going to be your meat and potatoes here. This is where the tax savings come in. If you want to lower your tax liability as much as you possibly can then you are going to want to record every deduction that you possibly can. And you know what? This spreadsheet can help! See below for a screenshot of the tab titled “All Business Expenses”:
This tab is incredibly simple to fill out. Whenever you have a business expense, you only need to fill out at least the first four column text boxes. If you keep a good record all year long on this worksheet you can run a simple SUMIF on the export page and boom, you have all of your expenses sorted nicely for you and ready to go come tax time! Of course, if this seems like too much of a chore you can have Keeper Tax do the work for you and rid yourself of any headache, or what I like to call, tax anxiety! They do a fantastic job of getting every deduction they can for you and ensure that you save as much on your tax bill as possible. To see how much you'll owe, take a look at Keeper's self employment tax calculator.
I’ve Filled Out 1099-Misc Template, Now What?
Well once you have everything filled out the excel spreadsheet, you are ready to file taxes! You can use this export sheet to fill out your tax Form Schedule C with any e-file provider that you choose. If you use a CPA you can also give this export the CSV or excel file to him/her and I’m sure they will be happy they aren’t getting a shoebox full of receipts this year! Once you input this data into your e-filing provider’s input screen there is a straightforward way you can double-check your work to ensure you didn’t miss anything. Here is a screenshot of the actual form Schedule C (the form where your freelance income/expenses go) from an individual tax return:
Avoiding The IRS
Now using your great critical thinking skills and comparing the 1099 export sheet and this section of the Form Schedule C, what do you see? Yes, there is a column titled “line number” that will tell you exactly where that expense should show up on this form - the Schedule C. This provides a great way for you to actually know what to look for on your tax return when they give you that warning message of “please review your tax return before submitting it.”
Because we have all been there at one time or another, and we probably have all just pressed “e-file” because we were hungry for that tasty looking refund! This is a great way to make sure no errors were made in the input of the IRS forms or return and it should also give you the confidence to know that if the IRS were to ever come knocking on your door you could provide them with the required information that matches up exactly with the return.
Don't forget to make your quarterly tax payments to avoid any fines as well. Try Keeper's estimated tax calculator to see how much you need to pay.
Get Your 1099-MISC Excel Template
I encourage you to utilize this CSV excel template to get you more organized when filling out your 1099-MISC forms and ready for tax time. You can You can copy a excel spreadsheet and download it here for free. If you have any further questions about your Federal Income tax or State tax, and IRS-pdf, or even where to input your SSN on a IRS tax form...I would invite you to reach out to a tax professional to assist you with your payer needs.