Skip to main content

All about 1099....

What’s the deadline?
The 1099 deadline (specifically 1099-MISC) is January 31, 2018 to send 1099s to the recipients AND file them with the IRS. This is a change from previous years, so take note!
Who receives one?
If you paid $600 or more to an unincorporated person or vendor for services related to your business using cash, check, or bank transfer (ACH) you need to issue them a 1099-MISC.
What if I paid them with PayPal or credit card?
If you paid an unincorporated vendor using PayPal, credit card, or other third party merchant, the payment service is responsible for reporting this information (usually by issuing a 1099-K). You don’t have to do a thing!
How do I file a 1099-MISC?
  1. Make a list of those who meet the qualifications for receiving a 1099-MISC.
  2. Send them a W-9 to collect their Taxpayer ID Number, address, and business name.
  3. Create an account with 1099Online.com.
  4. Create a payer which will be your business information.
  5. Create the payees. This is everyone who needs to receive a 1099 (Use W-9 info).
  6. Enter the amount of “nonemployee compensation” each person received.
  7. Choose the option to have the 1099 mailed to the recipient. Huge time saver.
  8. File the 1099s after carefully reviewing them.
What happens if I’m supposed to receive a 1099, but don’t?
You should report all income received, whether you receive a 1099 or not. No need to file one for yourself or delay your tax filing if someone doesn’t send you a 1099 or sends you a late one.

Comments

Post a Comment

Popular posts from this blog

How to lower your taxable income.

Simple Ways To Lower Your Taxable Income If you have “extra” money at the end of the year and want to do something with it besides rack up more expenses or pay the government taxes on the profits, here are my recommendations. Contribute to your retirement.  As a small business owner, you may consider contributing to a SEP IRA, solo 401k or a SIMPLE IRA.  All of these plans are great options for lowering your taxable income while saving for your (and your employees’) futures. Choose a SEP IRA if you are a small business owner who wishes to make a tax deductible contribution into an IRA for yourself and on behalf of your employees. Choose a SIMPLE IRA if you are a business owner with a workplace of 100 or less employees and will fund the bulk of their retirement. Choose a solo 401k if it’s just you. Contribute to a health savings account. This may not be the sexiest of options, but if you’ve ever experienced medical bills, you know how important it is to have an emerge...
Post a Comment
Read more

Do I have to prepare a 1099-Misc for a foreign contractor?

As a virtual accountant for creative business owners, I see a lot of really impressive remote employer/contractor relationships.  As my clients continue to grow their business, they often time seek virtual assistants and other talented contractors abroad.  One question that always comes up around tax time is “ Do I have to prepare a 1099-Misc for a foreign contractor? “. Answer: If the foreign contractor is not a U.S. taxpayer, and all of the contracted services were performed outside the U.S., a Form 1099 is not required. Instead, you will need to ask the contractor to complete a  Form W-8BEN .  The Form W-8BEN certifies that they foreign contractor is not a U.S. taxpayer.  The Form W-8BEN is never submitted to the IRS, however it needs to be held in your files in case of an audit.  If you are audited by the IRS, the Form W-8BEN will support your reasoning for not issuing a 1099.
Post a Comment
Read more