Tax Q&A for self-employed technicians

As 2023 draws to a close, it’s a perfect time to start thinking about the upcoming tax season. To help you prepare, we’ve compiled some of the most common tax questions we hear from our technician community.

What is a 1099 form?

Independent contractors use 1099 forms to report their income to the IRS. If you are a U.S. taxpayer, Field Nation will report what you earned for work completed on the Field Nation platform using a 1099 form. 

When you complete your Tax Information on the Field Nation platform, you indicate the state in which you live and work. Field Nation reports your income to the state listed in your Tax Information. If you perform services outside the state you live in, you should allocate the income and expense amounts to those states on your tax return.

When will I receive a 1099 form?

We will send your 1099 by Jan 31, which is the same as the W2 filing deadline. Field Nation will send your 1099 either electronically or via postal mail based on the delivery method you selected in your Tax Information. 

What’s included in my 1099 from Field Nation?

Your Field Nation 1099 includes all earnings and expenses (such as materials, supplies, and travel) that you billed on the platform. In addition, 1099-K forms report your gross pay, including any Field Nation service fees and insurance costs associated with your work on the platform.

As an independent contractor, what tax deductions can I take?

We can’t tell you which tax deductions you are or are not entitled to take, but here are a few of the most common tax deductions for independent contractors that use the Field Nation marketplace:

• Field Nation fees – 1099-K forms report gross pay, which are earnings before fees and insurance costs. This means many claim Field Nation fees and insurance costs as expenses on their taxes. Many providers use the Work Order Report in Provider Insights to determine what they paid in Field Nation fees. Note: prior to the 2022 tax year, Field Nation issued 1099-NEC forms, which are net of any Field Nation fees. 
• Materials and supplies – You may be able to deduct materials or supplies necessary to complete a job, including those for which you were reimbursed. Please note that your 1099 includes reimbursements, and you should take a deduction to offset them. To identify expenses that you were reimbursed for, you can use the Expense Report feature under “Insights.” Please note that when selecting a date for your report, expenses included are based on the expense report submission date rather than the date expenses were incurred. 
• Mileage – Due to gasoline price increases, the IRS raised the mileage rate to 65.5 cents per mile. ​​See IRS News Release regarding 2023 mileage rate increases for more information.
• Home office – if you have a home office, you may be allowed to deduct an allocated portion of mortgage interest, insurance, utilities, repairs, and depreciation. See IRS guidance around home office deductions. 
• Internet access and cell phone service are allocated by the percentage of business use.
• Subscriptions or licenses associated with a business.
• Training or seminars for a profession.
• Qualified business income deduction – allows certain businesses to deduct up to 20 percent of their qualified business income. 

How do I download my 1099 form from the Field Nation platform?

You can download your 1099 by navigating to Profile Settings/Tax Records. This article includes additional details about accessing your Field Nation-generated 1099.

Where can I get assistance with my Field Nation 1099?

If you have questions or need a correction to your 1099, please submit a case to Field Nation.

This blog is for informational purposes only and shall not be relied upon as official tax advice. Please consult with professional counsel regarding any tax, accounting, or legal questions.