1099 form is a set of docs required by the Internal Revenue Service of the United States. They are used by self-employers for reporting earnings, profit, dividends, government compensations and other. 1099 form is also known as an “information return”. Such documents are used for reporting different types of income that you receive during the year. A company or an organization you work with is responsible for sending you an appropriate form 1099 no later than on January 31 each tax year.

Who has to fill out a 1099 form?

Every United States citizen, who works as an employee and permanently receives salary or wage has to report his or her annual income at year-end using W-2 form. But those, who are working as independent contractors or freelancers should get a 1099-MISC form. Such a template should be provided by each of your business clients, but only under condition, that you get at least $600 throughout the calendar year. For instance, you are working as a freelance designer, writer or consultant and collaborate with companies and organization on an agreement basis. Total payments from each client should be reported with the help of 1099-MISC form. Submit the completed document to the IRS and then pay taxes based on it. However, according to the law, you have to report your total income anyway.

Other types of a 1099 form

If you have a number of stock investments or mutual funds, the most appropriate form for you is a 1099-DIV. This template works for reporting income, reimbursement and other distributions you may get during the whole current year. Such earnings differ from those you get from selling stocks. In case you earn interests, then there is a big chance you receive a 1099-INT from the bank where you have your interest-bearing accounts. In case, you get payments from a government institution, use 1099-G. Note that you and federal or state governments, that pay you are both responsible for reporting these amounts. Unemployment income has to be also included in the report. Add your state compensation if you have previously claimed a deduction state income taxes.

How to complete a 1099 form?

To submit 1099-MISC form, find a fillable and printable sample. Such services as PDFfiller provide you with an ability to fill this template online and send the final version of a document to the IRS straight from the website. Take a few simple steps to get done.

  1. Indicate the payer’s identification and account numbers.
  2. Add total taxable amount paid to the recipient during the year.
  3. Determine interest on U.S. Saving Bonds, Treasury bills, bonds, and notes.
  4. Include all backup withholdings and external tax paid.
  5. Specify the country of the U.S. possession to which the alien tax was paid.
  6. Enter non-taxable interest.
  7. Add your CUSIP numbers.
  8. Put down your signature.

Check the completed document for mistakes and send it electronically. The template is printable, so you are able to print it and fill it out manually to send it by mail.

To learn more about the 1099-MISC Form, please watch the following video:

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