The 1099 form is a document that used when some organization, company or individual, not being the employee of a person pays someone money. It may be a client of a freelancer or bank, that pays interest to the person. Anyway, this income, as well as any other earnings are reported to the Internal Revenue Service with 1099 tax form. It reflects the sum paid, to the person. It helps IRS to define whether you included this payment into the tax return and figure how many earnings you get per one tax year. It is important that company, bank or organization you work with should file you the document before the deadline — January thirty-first. Having the document in time you can easily complete the tax return documents.
How to file 1099 Tax Form?
The wage report form is quite detailed. Thus, to avoid mistakes and corrections with the paper variant, we recommend you to complete it digitally. It will look neat and will be faster delivered to the Internal Revenue Service and accepted. There is a wide variety of solutions on the Internet, but one of the best among them is PDFfiller. It helps to complete forms very easy with the usage of fillable fields and send the form directly to IRS via the personal account or print the whole form on the original blank and it will perfectly match.
What are 1099 Tax Form Types?
1099 sample is quite complicated and can be subdivided into several types, according to the income reported in it:
1. The most frequently used and widespread type is 1099-MISC template. It is used to cover most income cases, not specified by other types of sample. There are no special requirements, that is why it is so popular. Most companies use it when working with independent contractors. It is obligatory to infilling only if the person gets from the company more than six hundred dollars per year.
2. 1099-A type is used in case some individual lends money and gets income or some funds lend were returned. It means, that those who are in the business of lending money are subject to report this kind of earnings.
3. The 1099-B template is used to report the individual’s gains or loses, connected with the broker’s sales. It should be submitted for each person the broker works with.
4. 1099-DIV has the name, that in some kind is self-explanatory. According to the abbreviation it has and the IRS Official Website, this document is used to report dividends the person receives. It covers only personal dividends, but not the ones, received via the joint account or credit union.
5. 1099-INT covers the sums that are higher than ten dollars and the interest, gained from a bank or any other financial institution.
6. 1099-R includes the distributions from a pension, the program of sharing profit, retirement plan or annuity.
7. 1099-C is used to report the canceled debt, owed to some person or financial entity.
8. Form 1099-H is obligatory to file if you received any advance payments during the calendar year of qualified health insurance payments for the benefit of recipients of eligible trade adjustment assistance or their qualifying family members. These individuals are required to file the form as recipients.
9.1099-Q sample is for those who pay for learning expenses from 529 plan.