Section 179 Deduction
Definition
An IRS provision allowing businesses to deduct the full purchase price of qualifying equipment and software in the year of purchase, rather than depreciating over time. HelloBooks includes a Section 179 calculator.
Related Terms in US Tax
Estimated Quarterly Taxes
Quarterly tax payments made by self-employed individuals and businesses to cover income tax and self-employment tax. Due April 15, June 15, September 15, and January 15.
Form W-9
The IRS form on which a US person gives their name, address and taxpayer identification number to a business that will pay them, so the payer can report those payments correctly. Collecting a W-9 before the first payment is what makes accurate 1099 reporting possible, and a missing one can trigger backup withholding.
Form 1099-MISC
The IRS information return for miscellaneous payments such as rent, prizes, awards and certain legal or medical payments. Non-employee compensation moved to Form 1099-NEC, so contractor fees no longer belong here.
Form 1099-K
The IRS information return filed by payment settlement entities, including card processors and payment apps, reporting gross payment volume received by a business or seller. Gross volume excludes refunds and fees, so it will not match revenue, and the reporting threshold has changed repeatedly; check current IRS guidance for the year in question.
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