Before filling your forms to the IRS, as a tax filer, you must know the basic requirements for completing the forms. So that you will minimize your errors and you are limiting re-filing. IRS 1099 form consists of varieties of forms that are used to report your income. But, in this blog, we are going to understand what are all the required information you need to collect before filing. Before jumping into the requirements section, let us...

If you earn money as an independent contractor, the IRS considers you as a “business of one”. It is similar to a company that withholds the taxes automatically from the employee’s paychecks; here you need to withhold your own taxes. Having said that the independent contractor is like a business of one, you also get the expenses deductions such that you can lower the tax amount you pay to the IRS. You can itemize the deductions that...

Form 1099-K is an information return, which is provided to the merchants who have 20,000 or more transactions and summing more than $ 200,000 during the tax year through debit or credit cards, else through electronic payments like Paypal. Financial institutions like a bank will process the payments and send a copy to the Internal Revenue Service. The IRS has started utilizing the information on the Form 1099-K to question if the merchants are reporting their income...

To err is human. Everyone out there makes a mistake at some point in time. However, the ultimate thing is to correct the committed mistake. As a tax filer also you can commit some mistakes while filing 1099 tax forms. It is common and the IRS understands the situation better and gives a chance to correct the submitted forms. There may be a condition where you find the mistake after submitting the form to the IRS. So...

_he 1099-MISC form is to report the miscellaneous income earned during the 2018 tax year. This is also referred to as “non-employee income” to the Internal Revenue Service (IRS). This is the annual wage report form, this must be prepared, given to the employees and report to the IRS for the prior tax year. Non Employee Income Reporting on 1099-MISC The term “non-employee” is used by the IRS, which includes someone who offers their services to another...

Generally, the IRS wants the taxpayer to ensure that all the information provided on 1099 forms are accurate and filed on time. Though the penalties are mainly for the errors on the forms the IRS also fines for late submission of forms, missing documents in forms, or incorrect taxpayer details. Penalties for Failing to File Form 1099 When you miss to file or late to file Form 1099 by the due date and you cannot prove the...

Rules and regulations for filing 1099 returns get revised every new year and it’s quite important for every individuals, corporate, organizations, and institution who are liable to pay the taxes to be aware of these changes. Below listed are a few changes that are going to be implemented in this new year i.e. 2019 on wards that involves 1099-MISC and 1099-K. New Rules for Filing 1099-MISC and 1099-K Forms Beginning January 2019, the IRS will implement its...

The new tax reform 2019 by Trump has had a tremendous impact on the taxes that one has to pay each year. Especially for freelancers or independent contractors. Major changes that have affected these 1099 workers are the increment of standard deductions and decrement of itemized deductions. Another major change that has happened is the 20% pass-through deduction that is now available to practically every person other than a traditional employee. Due to these reforms, the standard...

Summer has started and people are yet to file their annual tax returns with just a month’s time in hand. In this busy schedule of their life, they wouldn’t be ready to file their returns within this month. Taking all these considerations, IRS has introduced something new where all the taxpayers can request the IRS to increase the timeline as per their convenience. Having said that, there are a lot of things that you have to consider...

Legislation pertaining to information returns and part of this legislation advances the tax filing due date for the Form 1099 MISC is recently amended by Delaware. The Form 1099 MISC is to report the non-employee compensation in the Box 7. Hence this makes the tax filing due dates in line along with the federal calendar. Form 1099 MISC with the Box 7 checked may be due on 31st January 2019 for the tax year 2018 and it...