Industries
Contractor Tax Preparation
Organizing Forms 1099 and preparing the return for independent contractors in California.
Independent contractors usually receive Forms 1099 and pay for their own tools, mileage, and insurance. We organize those papers and prepare the personal return, including the business schedule, from what you bring.
You can sit down by appointment in San Pablo or Concord, or send everything remotely.
Services that usually fit
Documents to start
- Forms 1099-NEC and other 1099s
- Expense receipts or a spreadsheet of them
- Mileage log
- Health insurance and estimated-tax records
- Prior-year return
Your chart of accounts, built for independent contractors
Stanza creates and maintains a chart of accounts so the deductions you are allowed to claim are identified and documented.
We set up income, cost of goods or job costs, and expense accounts organized around this industry’s deductible categories and the tax form lines they map to (Schedule C, or Form 1065 or Form 1120-S when the business files as a partnership or an S corporation). Sub-accounts separate items with a special tax treatment, so a repair is not mixed with a capital purchase and a liability is not booked as an expense.
Home office
A home office deduction depends on regular and exclusive business use, or on the simplified method’s rules. Recording the costs does not by itself allow the deduction.
Vehicle and mileage
Business miles need a log. You use the standard mileage rate or actual expenses under the rules for the method you choose for that vehicle.
Phone and internet, business share
Only the business share of a phone or internet bill is deductible. The account should hold that share, not the whole household bill.
Self-employed health insurance
A self-employed person may deduct health insurance premiums as an adjustment to income when the rules are met, including the rule that you are not eligible for an employer plan. It is not a Schedule C expense in every case.
Retirement contributions
SEP, SIMPLE, or solo 401(k) contributions may be deductible when the plan rules are met. The account records them. The limit depends on the plan and on net earnings.
Supplies and tools
Ordinary tools and supplies for the work are generally deductible. A large asset may have to be depreciated or reviewed for Section 179.
Software and subscriptions
Business software is generally deductible. Personal subscriptions stay out of the account.
Estimated tax payments
Estimated tax payments are not an expense. They are payments toward the tax. Booking them as an expense would understate profit.
How it is managed
- Each month we categorize transactions and reconcile the accounts to the bank.
- Receipts and mileage stay with the transactions they support.
- Personal spending stays out of the business accounts.
- Capital purchases are reviewed against repairs before anything is expensed.
- Vendors are tracked so a Form 1099 can be prepared when a form is required.
- A quarterly review of profit can be used to adjust estimated tax payments when those payments apply.
- At year end we review the accounts with the preparer so deductions are captured and the records support them.
Whether a deduction is allowed depends on your facts and on IRS and FTB rules. We help you claim what you are entitled to and keep records that support it. We do not guarantee savings or a dollar amount.
Book bookkeeping and QuickBooks setup with Lucia Leiva, Certified QuickBooks ProAdvisorCommon questions
- We can still report the income you show from deposits or invoices. We do not invent a form you did not receive.
- Not always. We can explain the filings an LLC adds. An attorney should review the legal step. Forming one is not a guaranteed tax saving.
- Yes. Book a remote appointment and send the documents.
- It separates home-office costs, mileage, the business share of phone and internet, self-employed health insurance, and retirement contributions. Health insurance for a self-employed person is often an adjustment to income, not a Schedule C expense, when the rules are met. Estimated tax payments are not an expense.
Offices in San Pablo (510-778-1579) and Concord (925-349-6924). Remote work is available in California.
Ready when you are
Ready to get organized? Book an appointment today.
Pick a time that works for you — in person at San Pablo or Concord, or fully remote.