what is the irs form 1099-misc and how to file it?
TRANSCRIPT
What is the IRS Form 1099-MISC and How to File it?
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What is form 1099-MISC?
1099-Misc is a Independent Contractors and Self-Employed form reports the total amount of payments you receive from a single person or entity during the year you've provided services to them.
It includes some of your personal information such as name, address and either Social Security number or employer identification number.
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What is form 1099-MISC? (Conti..)
The IRS 1099- MISC can be used to cover payments you receive from rental property, royalties, prizes, awards, and substitute payments instead of dividends.
The most common use of this form, is to report the earnings if you work as an independent contractor, such as a freelance writer. You only have to submit a form 1099-MISC if you made over $600.00 from a client.
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Who is Responsible for Preparing a 1099-MISC?
However, if you earn $500 from 20 different companies, you still must report your income even though you might not receive a single 1099-MISC.
In most cases, the payer must provide you with a copy of the form by January 31 of each year, as well as a copy to the IRS by the last day in February.
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Who is Responsible for Preparing a 1099-MISC?
Depending on how many different companies or people you receive payments from during the year, you may receive more than one IRS 1099-MISC.
Each payer must complete the form if during any year it pays you $600 or more.
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What to do with a 1099-MISC?
Even as an independent contractor you have to report all of your earnings on your tax return, but you do so in a different way than normal employees, who pay taxes right out of their paychecks.
If your freelance work is more of a side job and
not your main source of income you can just include the payments in “other income” which will go on the first page of your tax return.
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What to Do with a 1099-MISC? (Conti..)
If you work as an independent contractor for substantial periods during the year, then the IRS will treat you as self-employed. Self-employed taxpayers must report 1099-MISC income on a Schedule C attachment to their tax return.
In Addition you are also liable for all Social Security and Medicare taxes which you would calculate on the tax form Schedule SE and attach it to your return.
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Advantages of form 1099-MISC
There are many advantages in earnings non employee income and having to file a 1099-MISC.
The biggest benefit is that you can claim a lot of different deductions from your business that people with regular jobs can’t.
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How to Efile a 1099-Misc?
The easiest way to preparing tax reports online with the etax1099.com tax software.
Etax 1099 software will guide you through entering the information, and the software will do all the math and make sure the correct tax forms are filled out. You can create a free account to get started preparing your tax return.
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5 Steps to Efile Your 1099-Misc Online at Etax1099.com!!
Here follow these 5 simple and easy steps to efile 1099 forms online at etax1099.com with help of video tutorial.
Step1: Log into your etax1099.com account and click "Login" on the down of page.
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5 Steps to Efile Your 1099-Misc Online at Etax1099.com. (Conti..)
Step2: Once you logged into your account View the list of 1099 forms, you can select the right form (1099-misc) you are looking to e-file for
1099-MISC-Deals with the taxes payable due to miscellaneous income apart from salaries, wages especially in case of independent contractors, say employers/payers.
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5 Steps to Efile Your 1099-Misc Online at Etax1099.com! (Conti..)
Step3: You have to enter complete Tax details of the Sender and Receiver. Here you may have to choose Self Service or our Premium service for filing.
Self-service, you enter your Sender/Receiver information manually.
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5 Steps to Efile Your 1099-Misc Online at Etax1099.com!! (Conti..)
Step3 (Continue): Premium service, you can download our excel spreadsheet, add your information and send it to us through email, or you can send us the spreadsheet of your choice (it must contain the same values as our spreadsheet; additional fees apply.) Contact us for more details regarding our Premium Service.
Select anyone service which is more preferable
for your budgets.
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5 Steps to Efile Your 1099-Misc Online at Etax1099.com!! (Conti..)
Step 4: You have to add payer’s information of 1099-MISC (business type, Business name, TAX ID type, EIN/SSN, Address and Phone number).
Step 5: Review and Confirm your information before submitting to IRS. Click the Red "Pay now" button at the bottom of the 1099 screen when it's completed.
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Conclusion
You can file 1099-misc online or you can file it through the mail attached to your tax return.
The IRS prefers you send it electronically because it is easier for them to go through all the tax returns and saves a lot of paper and postage if you do it that way.
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Contact Us
Etax1099 Tax Professional team will help you to filling 1099 forms online and through calls. Feel free to contact us at 703-229-0326 or Click on Live Chat button.
Hurry up!! Register today and get extra discounts and deals on your form 1099 online filling at Etax1099.com.
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