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...

Federal Form 1040 Schedule C Instructions

The Form 1040 Schedule C is used to report the income or loss from the business that you operate or practiced as a sole proprietor. This article specifies the Federal Form 1040 Schedule C instructions. Federal Form 1040 Schedule C Instructions Filers of Form 1041, do not complete the block labeled “Social Security Number (SSN)”. Instead, you need to enter the Employer Identification Number (EIN) provided to the trust or estate. Define the business, that provided the...

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...

The Non Profit Tax Returns You Need To Know About

Discussing about the things that a non profit tax exempt organization needs to know in this financial year, just  read on the blog. Even if you are a nonprofit organization, which has tax exempt and do not pay the federal taxes, you are required to file an information form with the IRS. Form 990n is used for this purpose of filing the information. While you e-file form 990, it ensures that the nonprofit organization performs the business...

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...

Penalties for not Filing HVUT Form 2290 – HVUT Penalties

The Heavy Vehicle Use Tax (HVUT) Form 2290 deadline is approaching in September 3rd this year. What happens if you miss to file truck tax by the due date or if you do not file the Form 2290 on time? When you do not file the HVUT Form 2290 before the deadline, then you may attract the IRS penalties for the 2019-2020 financial years. What is IRS Form 2290? Every active trucker on-road needs to E-file IRS 2290...

E-File an Amendment to Correct your VIN instantly!

Vehicle Identification Number is a unique serial number assigned to motor vehicles by the automotive industry for identifying the individual vehicles. The National Highway Traffic Safety Administration of the United VIN numbers must contain 17 characters which contain both alphabets and numbers but does not include the letters I (i), Q (q) or O (o) which is often confused and misrepresented. Need to Know about Facts about VIN Before buying a used vehicle like truck or car,...