![]() The 1099-MISC is the most common because it covers all of the gray areas, but there are a lot of variations out there that we’ll cover.ĭon’t want to read the whole thing?Feel free to use the links below to jump to the section you’re interested in. ![]() These reports are for your records and serve as proof of transactions.Īll 1099 forms must be sent out by January 31st. Interests, dividends, debt cancellations, HSA distributions and other payments are reported with 1099 forms (-A through -SA).Īs a rule, you should report all income on your tax return, which is why Form 1099s are considered “informational.” You may or may not owe taxes on money from a 1099 in some cases, the income reported is not taxable (think 529s, IRAs, etc). It’s common for freelancers to receive 1099s for their work, but self employment earnings aren’t the only thing reported. What is a 1099?ġ099s are “information returns” issued by any entity or person that increases income. ![]() Whether you’re a new freelancer or a business owner thinking about hiring an independent contractor, understanding the ins and outs of 1099 form filing requirements can feel overwhelming. Download our free template for organizing freelancer invoices To avoid being penalized, I have to obtain a 1099 form (1099-MISC, in this case) from every client who paid me more than $600 during the previous tax year-that’s a lot of paperwork to keep organized. I kind of had to because, for me, tax time is a bit trickier than just submitting my standard W-2s. I read everything I could find about 1099s on the IRS website. Confession time: I recently did something pretty awful.
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