If you will be reporting an income other than your salary, tips or any wages that are usually reported on your W-2 form then you will need to file a form 1099 with your taxes. We all have to do it but it is important that we take the time to do it right. Thankfully the Internet has made this entire process much easier by allowing you to file your form 1099 online eliminating the hassle of mailing in your forms and figuring out what information goes where. Filing your taxes electronically will allow you to get done with the process that much faster and helps reduce any errors.
If you know you will be receiving a 1099 form from an employer is required to report it. Here are some tips to help you when getting ready to file your IRS 1099 forms online and avoid getting in trouble for missing or inaccurate information.
Effective and Simple Tips for Filing your 1099 Forms
1. Always watch your mail. A copy of each 1099 form that you receive from your employer is also sent to the IRS so you have to make sure that you file every 1099 form you receive so they match what the IRS has on file or you are sure to be audited.
2. Keep your address updated. If you have moved recently or believe that your old employer has an invalid address on file for you then it is up to you to give them the right information because no matter what address is on file it will be tied to your social security number and sent to the IRS.
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3. Correct any errors. Make sure that any 1099 forms you receive report accurate information about your payment because there is a short period of time for you to get in contact with your taxpayer so they correct their data before filing with the IRS.
4. File all your returns at the same time. Taxpayers have until January 31 to mail out 1099 forms but some do not mail them until much later. If you file too early you will have to go through the entire process all over again to supplement your return with the additional 1099 form(s) you have.
5. Keep your 1099 forms. It is not required for you to attach your 1099 with your tax returns. Simply reporting them is good enough and it is a good idea to keep them in case you have an audit.
For many people tax-season is no walk in the park and it can be even more of a hassle for those who are self-employed. Self-employed freelancers or contractors have to pay their own payroll tax, in addition to income tax, unlike those who receive a W-2 and have their payroll tax taken out of their paycheck automatically. Even though it can seem extremely complicated or time-consuming fear not because there are tons of resources available today to help you not only file your 1099 but determine what needs to be reported, that all the information that is being reported is accurate and that you are filing your 1099 forms within the deadline.