IRS debuts draft of 1099-NEC to Replace 1099-MISC box 7

Recently the IRS released the draft of 1099-NEC, which is considered to be the replacement of Form 1099-MISC Box 7 to report the non-employee compensation and Box 9 to report the direct sales about $5,000 or more. The NEC can reduce the confusion caused after the passage of the PATH Act in 2015. As per the PATH Act, the deadlines to report Form 1099-MISC Box 7 is dated from 31st March to 31st January. But the end...

Know everything about Form 1099-MISC, Miscellaneous Income

Form 1099-MISC reports all the non-employee compensation on every year-end summary. The IRS 1099-MISC Form covers royalties, independent contractor’s income, self-employment, rent, crop insurance proceeds, and various other kinds of miscellaneous income. Here in the Form 1099-MISC, MISC refers to the miscellaneous income, in short. More about Form 1099 MISC Miscellaneous Income As a taxpayer in the United States of America, you need to file your tax return every year without fail regardless of the amount of...

How to Fill Out a Schedule C Tax Form?

If you are a regular employee, you will receive a W2 form that states you need to know. Then you will fill the 1040 form and file them. But when you are self-employed and receive Form 1099 as a contract employee, you need to include the IRS Schedule C form along with your personal tax filing. Schedule C is also called “Profit or Loss from a Business”. Understand the form better, so that you can report your...

Use the Right Filing Status to Benefit Student Loan Payments

Taxpayers who recompense their student loan using ICR, IBR or PAYE repayment plan must be a little more cautious while filing their tax returns. Because the filing status of the tax returns you chose will affect your repayment plan. Benefits Student Loan Payments When the taxpayers are married, they must decide whether to file the tax return along with their spouse using the status “married filing jointly” or just to keep the income separate by filing “married...

IRS Tools to Help Small Businesses: Understand Employment Taxes

The Internal Revenue Service provides many free tools for small businesses in order to help them understand and comply with the law. The IRS product includes printable calendars, an online calculator, step-by-step guides, and a series of educational webinars that are readily available on the website of the IRS. The federal law obliges the employees in the United States to withhold federal taxes from the wages of their employees. The IRS tools help all the small businesses...

Self-Employed Tax Tips for Students with a Summer Jobs

Yay, its summertime, and schools are off. Students become part-time professionals and engage with summer jobs or part-time gigs. These students are considered as self-employed individuals during their period of work. If you are a self-employed student for time being, there are also certain criteria that you must be aware of. Just read on to get information related to 1099 self-employed taxes. Self-Employment Who are considered as self-employed? And who are obliged to file IRS Form 1099?...

How to Get 2290 Tax Penalties Waived? Penalties and Interest Waived Off?

Though truckers are cautious in e-filing form 2290, some situations lead them for late filing. This results in the payment of the penalty. Are you a driver filing form 2290 after the due date? Are you prepared to pay the penalty? The heavy highway vehicle use tax (HVUT) starts its filing session from July 1st and the due date to file taxes for the complete year without penalty is 31st of August. Filers face penalties for late...