The question might seem simple, but this basic form can sometimes be confused or even overlooked, leading to penalties and even the threat of jail time. Staying organized and keeping up with your 1099 tax forms as a contractor is essential to your business’ well being. When you are a contractor, your lifeblood is carved into these 1099 tax forms which you will receive on a yearly basis.
For the most part, transcribing fully these 1099 forms on your tax returns is the essence of showing what your yearly taxable earnings are for the tax year. You need to be able to show exactly what you made and the 1099 form is at the core of that.
We are experts in 1099 and offer tax form processing services for businesses and nonprofit organizations.
1099 Tax Forms FAQ
But what if you don’t get a 1099 tax form? Is it then ok to not report that on your tax returns?
Nope, you have to report all income. This is where some people get confused: If a payee pays you less than $600 for the year, they are not required to send you a 1099 earnings document. But, that doesn’t mean you aren’t supposed to report the earnings. you still need to report what you earned, even if its as little as $10. All earnings are taxable, so report everything, whether or not you receive a 1099 or not. You never want to be caught with your pants down with the IRS, they can make your life a living hell.
What if you don’t receive 1099 on time?
The IRS recommends contacting them at 800-829-1040 and they can get you set up with a substitute form. Just don’t do anything, you need to file, 1099 or not.
Ah, the dreaded 1099. You loved the cash when you made it, but paying the tax man, well, sucks. Being self-employed means the ultimate personal freedom, but it comes with the price of responsibility. It is important that you be really careful with your income when you work from 1099 tax form. Without having taxes previously removed, you become a sitting duck for becoming one of those people who have tax issues following them into later life (IRS installment payments are no fun). Avoiding the 1099 pitfall isn’t really complicated if you take some good precautions and act responsibly. So how can you make it better?
Always put money aside for taxes. You KNOW that taxes are coming, they come every year. I would advise putting at least 30 percent into some sort of savings account. That’s a pretty good number to go by, but hey, it wouldn’t hurt to put more and maybe come out of the tax season with little extra savings. When you get a check, you put some back. That simple. This will also help you sleep at night knowing you are more prepared.
Keep all your receipts, don’t fly by the seat of your pants. The downside to not keeping receipts means not being able to write things off. Further worsening this scenario is that you won’t even remember legitimate deductions anyways. Years later you will probably remember something you should have written off, but it will be way too late (for all intents and purposes). So keep up with them as you go. You can even scan them into things like Google Drive if you don’t like paper ones (none of us do). However you want to organize, just get it done.
Think about what you should write off. If you have a tech blog, did you buy an iphone that year? Did you buy some random new battery charger? Consider all the items you buy and decide if they were needed for your business, leave no purchase unturned. Everything should be examined and then examined again for good measure.
Medical expenses. Examine how your state and federal taxes deal with these because you could be looking at a really good deduction here!
Who Gets a 1099 tax form?
When you pay a person for services provided to your business and that person is not your employee, you may be required by the IRS to issue a FORM 1099-MISC to the individual and to report the payment to the IRS on Form 1096.
Where is the 1099 Form Download?
Go to the IRS website and download the 1099 tax form.
The fear of losing documents around the tax season is a big fear and also a justifiable one. But what if the Government made it easy to replace your Social Security 1099? Wait, did I just say the Government would make something…”easy?” Well, that’s exactly just what happened and let me tell you, we are super excited about it. Ok, that’s losing it a bit too much over something that’s not that big of a deal, but hey, for some, it’s pretty cool.
You can instantly replace your SSA-1099 at www.socialsecurity.gov. This gives a chance to your accountant or whoever is filing the taxes to quickly replace the document at the last minute if the circumstances call for it. And this is also big news for the Social Security office. Why? Well, they typically field 1.7 million requests for replacement forms. Think this makes them feel better? This speeds up and makes efficient the entire deal.
This helps those who use 1099’s avoided those dreaded Social Security office calls. My Goodness, none of us has any time for that!
“Beginning this tax season, any ‘my Social Security’ account holder who misplaces their original SSA-1099 will be able to request an instant replacement from our menu of online services,” Carolyn Colvin, acting commissioner of Social Security, said. You can still call 800-772-1213, but expect 7 to 10 business days to get it. Going online to replace the SSA-1099 is the way to go, folks.
Now you know what a 1099 tax form is and how to file your taxes using this form called 1099. Contact us to inquire about our 1099 forms processing outsourcing services.