Top 12 Tax Tips for New Small Businesses

When you are new to the field of small business, it is better to check the tips and tricks for small business before filing your tax returns. Let us discuss, the top tax deductions for small businesses that can be claimed by the sole proprietors. Similar claims can be applied by other entities like S corporations, C corporations, partnerships, and Limited Liability Companies (LLCs). But there is a slight difference in the rules for some tax deductions....

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...

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 Prepare 1099 when you employ independent contractors?

In this tax season, let us check on how to close the tax books and to prepare the tax documents. When you employed an independent contractor and paid them $ 600 or more for their business service, you need to prepare and issue the Form 1099 MISC to the concerned individual. IRS Form 1099 MISC IRS 1099 MISC Form accumulates a person’s income from all his / her non-employee compensation. The independent contractors use this Form 1099...

How To Make Corrections To Form 1099-MISC Form

Form 1099 is one of the IRS forms that are used by the tax filers to report any specific types of payments. It contains a series of the informational returns identified by a letter, consists of the forms ranging from Form 1099-A to Form 1099-SA. Business owners use the IRS 1099-MISC Form in order to report the money paid to the independent contractors. Form 1099-MISC contains the information about the business and the independent contractor you paid....

IRS debuts draft of 1099-NEC for 2020 to Replace 1099

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 that caused after the passage of PATH Act in 2015. As per the PATH Act, the deadlines to report to report Form 1099 MISC Box 7 is dated from 31st March to 31st January....

Know about the Series of All 1099s Forms – IRS 1099 Forms

IRS Form 1099 is used to list various types of income that you receive apart from your salary or wages throughout the financial year. It is mandatory for every tax payer to report their extra income to IRS. Form 1099 is used to list the payments that you receive through the interests from bank, dividends from stock investments or payment for your freelance work. Note that, everytime you receive a form, IRS also receives a copy of...

1099-K vs 1099-MISC—What’s the Difference?

When you are self-employed or working on a contract basis without withholding the taxes, then your income will be reported under different tax forms like: 1099 MISC Form or 1099 K Form. Consultants or freelancers who receive $600 or more during a tax year can receive 1099 MISC form, on the other hand a freelancer who works on-demand economy such as Lyft or Uber will receive 1099 K Form. So in this article let us find the...

How to Report and Pay Taxes on 1099 Income with Appropriate Form

When you have received a 1099-MISC from the person who paid you for your service that you did during the last tax year. Now what to do with the 1099-MISC form will be a question. To know better read on the article. What Do If you receive 1099-MISC Form? 1099-MISC form is to report amounts paid to the non-employees ( independent contractors, freelance workers, and other businesses to whom payments are made) Non-employees get 1099-MISC each year...