http://www.naea.org/
See weblink above. Find an "Enrolled Agent" in your city or county. They'll know exactly what to do.
And as you should already know this is July 24 2012 RIGHT and this 1099 form was received around the end of January for the 2013 tax filing season and you are just now starting to ask this question about your problem that you think you might have with this 1099 at this time in your life.
Schedule C and the Schedule SE along with the 1040 FIT return to correctly fill out and complete your 1040 income tax return for your business operation.
Use the search box at the www.irs.gov website for What is Small Business Filing Season Central?
Small Business Filing Season Central is your one-stop assistance center for filing your business returns.
http://www.irs.gov/businesses/small/article/0,,id=134947,00.html
Business Expenses
Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.
http://www.irs.gov/businesses/small/article/0,,id=109807,00.html
What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
It is important to separate business expenses from the following expenses:
For additional information, refer to the chapter on Cost of Goods Sold, Publication 334, Tax Guide for Small Businesses and the chapter on Inventories, Publication 538, Accounting Periods and Methods.
Capital Expenses
Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.
Personal versus Business Expenses
Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.
The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.
Business Use of Your Home
Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.
Business Use of Your Car
Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.
Other Types of Business Expenses
This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses.
References/Related Topics
Page Last Reviewed or Updated: February 21, 2012
Filing and Paying Your Business Taxes
http://www.irs.gov/businesses/small/article/0,,id=109805,00.html
The form of business you operate determines what taxes you must pay and how you pay them.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay.
For additional information refer to Publication 583, Starting a Business and Keeping Records.
Estimated tax
Self-Employment Tax
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
•If your net earnings from self-employment were $400 or more.
For additional information, refer to Self-Employment Tax.
http://www.irs.gov/businesses/small/article/0,,id=172179,00.html
Hope that you find the above enclosed information useful. 07/24/2012