Day 13: What to Know About 1099-NEC & Contractors: A Simple Guide for Businesses and Freelancers

🧾 Day 13: What to Know About 1099-NEC & Contractors: A Simple Guide for Businesses and Freelancers In today’s flexible work landscape, hiring independent contractors can be a smart move—offering agility without the long-term commitments of traditional employment. But with this freedom comes responsibility, especially when it’s time to tackle tax forms like the 1099-NEC . Let’s break down what you need to know about using this form and working with contractors, without the tax jargon overload. πŸ“Œ What Is the 1099-NEC? The 1099-NEC (Nonemployee Compensation) is an IRS form used to report payments made to nonemployees for services. It replaced the old use of Form 1099-MISC for service payments starting in 2020 . You’ll need to issue this form if you paid: $600 or more in the calendar year To an individual or business not classified as an employee For services (not products or rent) Who is not incorporated—i.e., a sole proprietor or LLC taxed as such It goes to both t...

πŸ“… Day 5: How to Track Mileage Without the Stress

 

πŸ“… Day 5: How to Track Mileage Without the Stress

If you drive for business — even occasionally — tracking your mileage could lead to real tax savings. But let’s be honest: nobody wants to carry around a paper logbook or guess their odometer reading every day.

Good news: there are smarter (and simpler) ways to do it.

πŸš— Why Mileage Matters

The IRS allows you to deduct business-related driving at the standard mileage rate, which in 2025 is $0.67 per mile (subject to updates). That means:

100 miles = $67 deduction
1,000 miles = $670 deduction

For many solopreneurs, that’s hundreds or even thousands of dollars in write-offs — if you track it properly.

✍️ What Trips Can You Count?

  • Driving to meet a client
  • Picking up business supplies
  • Visiting a vendor or coworking space
  • Attending a business conference or training

🚫 Personal commutes don’t count (like from home to a regular office location).

πŸ“± 3 Stress-Free Ways to Track Mileage

  1. Mileage Apps (automated, low effort)
    • Try MileIQ, Everlance, or Stride
    • They run in the background, detect trips, and let you “swipe” business vs. personal
  2. Spreadsheet Tracker (simple + free)
    • Create a column layout: Date Start/End Miles Purpose
    • Use Google Sheets on your phone for quick logging
  3. Calendar Sync Method
  • At the end of each week, look at your appointments and log the trips
  • Good option if you don’t drive often but want to stay accurate

✅ Tip from a CPA

Even if you switch from the standard mileage rate to actual vehicle expenses, you still need a mileage log to prove business use. So start now — you’ll thank yourself come tax time.

Coming up next: Day 6 – What’s Actually Deductible When You Eat Out for Business (hint: it’s not your grocery run πŸ›’). Let’s dig into business meals tomorrow

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