1099 Form

As a business owner, bookkeeper, or accountant, you may need to file 1099 forms. What is a 1099 Form? Form 1099 is one type of IRS tax form used to report non-salary income for federal tax purposes. There are more than 20 variations of Form 1099, but the most common are 1099-MISC and 1099-NEC. Non-salary income includes: Money from tax dividends Prize winnings Gambling and lottery winnings  Interest income IRA distributions and withdrawals  Personal property sales State tax refunds Credit card debt forgiveness Who Fills Out a 1099 Form? As a business owner, bookkeeper, or accountant, you are the one who fills out 1099 forms for every non-employee you pay more than $600 in a calendar year. Who Receives a 1099 Form? Non-employees receive 1099 forms. This is usually independent contractors or freelancers, but can also be partnerships.  Every 1099 form has five copies: Copy A is meant for the IRS Copy 1 is meant for the state tax department, if applicable Copy B is for the recipient (non-employee); they do not send this form to the IRS, but they do report the income on their personal tax return Copy 2 is meant for the recipient (non-employee) to submit to their state tax department, if applicable Copy C is for your records Who Doesn’t Receive a 1099? If you pay a non-employee less than $600 in a calendar year, then you do not need to file a 1099. If a non-employee, such as an independent contractor, is registered as a C or S corporation, you do not need to file a 1099.  If you have employees, you will not file 1099s. Instead, you will file W-2s.  What Information Does a 1099 Form Require? When you go to fill out a 1099 form for each non-employee you paid at least $600 last year, you need the following information: Their legal name Their address Their taxpayer identification number (TIN) The total amount you paid them last year How Do You Get This Information? To acquire this information for each non-employee, you need to …

Continue Reading about Everything You Need to Know About Filing 1099 Forms →