Did you ever have the need to fill out a 1099 form? If you are a sole proprietor of your business or if you are self-employed, as a small business owner, you need to be aware about 1099 form. If you are completely unaware about it or have ignored it at a great extent then you should start reevaluating your tax dues. All payments except the ones paid to your employees needs to be reported to the Internal Revenue Service (IRS) every year.
All these revenues should be reported to the government quarterly by all business owners. Tax cannot be chopped off completely. For fulfilling your tax obligations, one needs to submit 1099 form and submit it to IRS. This article provides the simplest understanding of filling out 1099 form in a step by step procedure.
What is a 1099 Form?
Entrepreneurs must present a yearly 1099 tax form for every self employed entity paid over $600 in that year. Independently employed people must fill out a 1099 form if their income crosses over $3000 in one year.
Alongside paystubs or bills, you ought to get this form via the post office from every business you worked for during the year. In the event that you didn’t get this form via the post office, it is your duty to source one and document your tax return.
Step by Step procedure for filing out a 1099 Form
As an entrepreneur or independently employed individual, beneath are the means to fill out a 1099 form.
Enter your information in the ‘payer’ segment.
Finish your personal details in the box in the upper left corner, including your full names, personal residence, and contact number and so on.
Fill in your tax ID number. As a contractor, utilize your government provided social security number. As an entrepreneur, utilize your business taxpayer ID number.
As an entrepreneur, enter the contractual worker’s tax ID number which is found on their form W-9.
At that point, enter their individual information under this container – which is additionally found on form W-9.
Fill out the account number you have allocated to contractor.
This record number is just required if past 1099 forms have been adjusted.
For independently employed people, this account number should already be filled out if you got your 1099 form via the post office.
Enter the aggregate sum you paid the self employed contractor in box 7.
Independently employed people should simply enter the aggregate sum earned from the business in box 7, if it’s not already filled out.
Step by step instructions to file a 1099 Form
Since you know the fundamentals on the filling out a 1099 form, here’s some information on the best way to document it:
- To be sent to the IRS: Copy A
- To be sent to the state tax office: Copy 1
- To be sent to the contractual worker: Copy B and Copy 2
- To keep for your own particular records: Copy C
The due date for documenting your 1099 form is January 31st. Make a point to send both a duplicate to the contractual worker and the IRS before this date. In conclusion, as a business you will likewise need to submit 1096 form to the IRS. This form is a synopsis of all the 1099 forms you have submitted for every self employed entity. Ensure you show the aggregate sum paid throughout the year on form 1096, which should likewise be presented by January 31st.Tags: check stub, check stub maker, Check stub maker free, check stub online, check stubs, create a pay stub, create pay stub, Create pay stubs, easy stub, form w-9 2014, form w-9 2015, form w-9 2016, form w-9 2017, form w-9 online, free check stubs, Free Pay Stub Generator, free pay stubs, free paycheck calculator, free paycheck stubs, free paystub, free paystub generator, free paystub maker, free printable pay stubs online, how to make check stubs, make pay stubs, online check stub, online pay stub, online pay stub generator, online pay stubs, online paystub, pay check stub, pay check stubs, pay stub, pay stub calculator, pay stub creator, pay stub generator, pay stub maker, pay stub online, pay stubs generator, pay stubs online, paycheck stub generator, paycheck stub maker, paycheck stubs, paystub calculator, paystub generator, paystub maker, paystub maker free, w2 form 2015, w2 form 2016, w2 form 2017, W2 Form Online