What is 1099-MISC Form?
Intended for independent contractors and self-employed persons, the IRS 1099-MISC Form is, serves a similar purpose as what a W-2 Form does for employees. The 1099-MISC reports the payments that have been received from a single person or entity during the tax year. Not just any payments, but ones having to do with businesses. For example, if you hired someone to paint your office building, fix a company car, or write copy for your company’s blog, you may need to E-file a 1099-MISC Tax Form. If you hired an independent contractor for simple Miscellaneous work valued under $600 for the tax year, you probably don’t need to E-file a 1099-MISC Tax Form for that payee. 1099 Tax Forms do require some personal information, such as Name, Address and Social Security or Employer Identification Number(EIN).
When looking at the 1099-MISC Form, there are a million little boxes that seem so random. Fishing boat proceeds? Excess Golden Parachute payments? What does it all mean? It is likely that the only thing you need to worry about when you receive this form is the parts that are filled out with income. When you want to E-file a 1099 Form, you will be asked about any other income you have received, and that’s the only time you really need to worry about your 1099-MISC. Ignore all the other boxes.