It is the province of a freelance individual to report their tax income each quarter. Tax can not be evaded ! To fulfill your tax obligations you must fill out a 1099-MISC form and submit this to the IRS.
In this web log, we provide a simple understand of a 1099-MISC form and a bit-by-bit scout to filling one out.
What is a 1099-MISC Form?
small business owners must submit a annual 1099-MISC tax kind for each independent contractor paid over $ 600 in that year. freelance individuals must fill out a 1099-MISC form if they earned over $ 3000 in one year.
Along with paystubs or invoices, you should receive this form in the mail from each employer you worked for during the year. If you did not receive this class in the mail, it is your duty to beginning one and file your tax retort.
How to Fill Out a 1099-MISC Form
As a modest business owner or freelance individual, below are the steps to fill out a 1099-MISC form.
Enter your information in the ‘payer ‘ section.
complete your personal details in the box in the top-left corner, including your broad names, home address, contact number etc.
Fill in your tax ID number. As an autonomous contractor, use your social security number. As a occupation owner, use your business taxpayer ID number.
As a business owner, enter the contractor ‘s tax ID numeral which is found on their form W-9. then, enter their personal information under this box – which is besides found on shape W-9. Click here to Create Your Form 1099-Misc in Less Than 2 Minutes
Fill out the account number you have assigned to the autonomous contractor. This report number is only compulsory if previous 1099 forms have been corrected. For freelance individuals, this account issue should already be filled out if you received your 1099-MISC form in the mail.
Enter the full come you paid the mugwump contractile organ in box 7. freelance individuals must just enter the total total earned from the employer in box 7, if it is not already filled out.
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How to File a 1099-MISC Form
nowadays that you understand the basics on how to fill out a 1099-MISC form, here ‘s some information on how to file a 1099 misc human body :
- To be sent to the IRS: Copy A
- To be sent to the state tax department: Copy 1
- To be sent to the contractor: Copy B and Copy 2
- To keep for your own records: Copy C
The deadline for filing your 1099-MISC mannequin is January 31st. Make surely to send both a replicate to the contractile organ and the IRS before this date. last, as a occupation you will besides need to submit 1096 shape to the IRS. This mannequin is a compendious of all the 1099 forms you have submitted for each autonomous contractor. guarantee you display the sum total paid throughout the year on shape 1096, which must besides be submitted by January 31st.
Keep up with your Business Admin
If you ‘re a small business owner or freelance individual, our 1099-MISC manufacturer remains the best way stay on top of your business admin with the pro ! You can always create your own paystubs as well with the paystub generator.