Form 1099-MISC Information
Tax season is in full swing so I thought I would take the time to answer some common questions concerning independent contractors, telecommuters and 1099 forms. Here are a few that I have received in the past concerning what these forms are and what to do with them.
I am an independent contractor who works from home (telecommuter). The company I contract with sent me Form 1099-MISC. What is this and what do I do with it?
Similar to the W-2 form employees receive, the 1099-MISC is an informational form that a company sends to the IRS to report the payments they have made to their independent contractors in the last year. As an IC, you do not have taxes taken out of your payments like an employee would, therefore requiring a different form than a normal employee.
You use this form to report income on your tax returns. You should receive a 1099-MISC from each company you contracted with and received more than $600 in payments.
I was an IC for a company and made $400 this year. Will I receive a 1099?
You may or may not receive a 1099 from a company if you made less than $600. Some companies will send all of their independent contractors a 1099, no matter what amount of money they are paid. However, they are not required to send one unless the person made $600 or more.
I made $1,000 with a company that I was an independent contractor for but have not received a 1099 from them? What should I do?
Companies have until January 31st to have their tax forms postmarked. If it nears the 31st, be patient. Chances are they are on their way to your mailbox. Keep in mind that this is the date which they need to be postmarked by, not received by. If the middle of February arrives and you still have not received the form give the company a call and inquire about if and when they mailed the form. If you have no luck with the company you can always contact the IRS for further help.
You can go ahead and file your return without the forms, but you must report the income you received from the company.
Where do I report the income on my 1099-MISC forms on my tax return?
You should figure your total earnings, before expenses, as an independent contractor and report it on Schedule C: Profit or Loss from Business, line 1 (gross receipts or sales).
I am a Virtual Assistant and have contracted a few projects out to someone. Do I need to report these payments to the IRS? Is there anything that I need to send to the IC regarding these payments?
If you have paid $600 or more to one IC, then you must send them a form 1099-MISC stating the amount you paid them for the year. You also need to send a copy to the IRS.
If you paid the IC less than $600, you can write the amount off as an expense and do not have to send a 1099.
All telecommuters should keep in mind that even if a company does not send you a 1099, you are still responsible for reporting all income you received throughout the year. Detailed records of income received will make this process much easier if you do not receive a 1099 and it is always good to have a double check of your records too! I cannot stress enough just how important it is to keep accurate records as a telecommuter.
I am an independent contractor who works from home (telecommuter). The company I contract with sent me Form 1099-MISC. What is this and what do I do with it?
Similar to the W-2 form employees receive, the 1099-MISC is an informational form that a company sends to the IRS to report the payments they have made to their independent contractors in the last year. As an IC, you do not have taxes taken out of your payments like an employee would, therefore requiring a different form than a normal employee.
You use this form to report income on your tax returns. You should receive a 1099-MISC from each company you contracted with and received more than $600 in payments.
I was an IC for a company and made $400 this year. Will I receive a 1099?
You may or may not receive a 1099 from a company if you made less than $600. Some companies will send all of their independent contractors a 1099, no matter what amount of money they are paid. However, they are not required to send one unless the person made $600 or more.
I made $1,000 with a company that I was an independent contractor for but have not received a 1099 from them? What should I do?
Companies have until January 31st to have their tax forms postmarked. If it nears the 31st, be patient. Chances are they are on their way to your mailbox. Keep in mind that this is the date which they need to be postmarked by, not received by. If the middle of February arrives and you still have not received the form give the company a call and inquire about if and when they mailed the form. If you have no luck with the company you can always contact the IRS for further help.
You can go ahead and file your return without the forms, but you must report the income you received from the company.
Where do I report the income on my 1099-MISC forms on my tax return?
You should figure your total earnings, before expenses, as an independent contractor and report it on Schedule C: Profit or Loss from Business, line 1 (gross receipts or sales).
I am a Virtual Assistant and have contracted a few projects out to someone. Do I need to report these payments to the IRS? Is there anything that I need to send to the IC regarding these payments?
If you have paid $600 or more to one IC, then you must send them a form 1099-MISC stating the amount you paid them for the year. You also need to send a copy to the IRS.
If you paid the IC less than $600, you can write the amount off as an expense and do not have to send a 1099.
All telecommuters should keep in mind that even if a company does not send you a 1099, you are still responsible for reporting all income you received throughout the year. Detailed records of income received will make this process much easier if you do not receive a 1099 and it is always good to have a double check of your records too! I cannot stress enough just how important it is to keep accurate records as a telecommuter.
posted by Mama Arika at 12:27 PM
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