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Form 1099-MISC - Tax Forms - 1099 and W2 IRS Tax Forms | Buy Tax Forms

Home » Forms » Form 1099-MISC

Form 1099-MISC

If you are a company or person who received money due to prizes, awards, royalties, and other things of that nature you are required by the IRS to report all of them on the 1099-MISC form. Furthermore, if you work as an independent contractor such as a freelance writer this is also the form that you will be responsible for filling out.

About The 1099-MISC

The 1099-MISC form is very similar to the form used by independent contractors by the name W-2. This form allows individuals to be able to report all of the money that they have received during the given year for the services that they provided to someone as an independent contractor. As with the other forms provided by the IRS you will have to include personal information such as your EIN/social security number, name, and your current address. Furthermore, it is very important that you state why you received the money as well. However, stating payment is something that is easily because there are different boxes available for you to classify your payments.

Preparing a 1099-MISC

The person responsible for preparing your 1099-MISC is going to depend on whether or not you work for a lot of different companies/people or a few. Each payer is responsible for completing the form during the even that you make more than $600 with them. However, if you only earn $500 from 50 different companies you will still have to report the income earned but the payer will not be the one responsible for sending you the form. Sometimes you may not receive any 1099-MISC’s but you are the one who will be held responsible if the money you have received during the year has not been reported to the IRS. However, usually the payers are good about filling out the forms and providing you with a copy by the 31st of January in addition to making sure that the IRS has received a couple by the end of February as well.

What To Do - Anyone who works as an independent contractor or freelance writer is responsible for reporting their income received throughout the year on their income tax just like any other employee. However, the difference is the process that independent contractors have to take is just a little bit different than the average employee. If your independent contractor work is not your main source of income you will just have to put the payments that you received in the other income section on your tax return. However, if you work as an independent contractor full time then you will be classified as self-employed. Self-employed workers are responsible for reporting their income in the Schedule C section of the tax return. Additionally, you will still have to pay for social security and Medicare taxes but you can calculate that in on the Schedule SE section of your return.

Advantages of the 1099- MISC

What many people do not realize is there are various advantages that come along when you receive a 1099- MISC form. The main advantage is you are able to claim a lot more deductions than the average employee is because so many deductions can relate to your profession.

One of the main deductions that independent contractors are able to receive is due to their computer since that is how they complete their work. However, since you are not getting taxes taken out of your money before you are paid you will be responsible for paying tax payments throughout the year. But, since you will be able to accurately figure out approximately how much you will owe you can be sure that you do not pay too much money in taxes throughout the year. Additionally, many people find that Turbo Tax can be of great assistance to them.

 

 

 
 
 
 

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