Receiving a 1099 form and reporting it to the IRS is not a unique process. The 1099 form is used to report a variety of income other than wages, salaries and tips for which the W2 form is used. 1099 forms are given to individual contractors for services rendered by them to large businesses. Businesses provide a 1099 form only if the individual contracts earned income$600 and above. otherwise, no 1099 form is required. But there are different 1099 forms for different purposes. Below is a description of the 4 types of 1099 forms;
Form 1099 Misc – Form 1099-MISC is used to report miscellaneous income for individuals and corporations that paid $600 or more in non-employee service payments during the calendar year. In other words, Form 1099 Misc is usually given to independent contractors such as attorneys, executors, health care providers, and administrators. , rent and etc. who offered their services to the company, and in return we received a compensation of 600 pounds and upwards. 1099 forms are issued by the government so that no income is hidden and then reported to the IRS for income taxes. Form 1099 Misc business income must be filed by January 31, 2012 and also reported to the IRS by April 2, 2012 if you are to file electronically.
Form 1099 K – A new 1099 form that debuted since 2012 is the FORM 1099K which usually reports to the merchant and third party payments network. The form is required to report payment transactions. A payment transaction is when a payment card (credit card) is used to make a payment or some settlement through a third party payment network such as e-bay, pal and etc. So people who have a payment account, credit card account or any similar account will receive 1099 K at the end of the year. Businesses will need to report a 1099-K form only if they have gross receipts of $20,000 and over or 200 and over transactions.
Form 1099 Div – Form 1099 Divisions and Distributions is the official form that usually reports all capital gains tax and payable to the dividender, including those that are reinvested in the given amount. the exaction of the year. The sums shown above on the 1099 Div form represent the amounts that fund companies provide to each investorinvestment returns for the year reporting to the IRS. Investors use form 1099-DIV to help report income received from investments on their tax return each year.
Form 1099 INT – The official Office 1099 INT form is issued by interest payments received to investors at the end of the year. Lenders have a form of issuing those who have paid a minimum of $10 in interest per year. Providers in this case include banks and savings institutions. Interest income reported on form 1099-INT includes interest paid on savings accounts, interest-bearing checking accounts and US savings bonds. This form is also used to report other items tax related to interest income, such as early penalties and federal withholding tax . The form must be filed with the IRS on April 2nd 2012.
The next filing period for 1099 forms begins January 1st 2012. Businesses have to ensure that they provide the correct and required 1099 forms to contractors/payees on January 31st 2012. Businesses are also required to have 1099 efile forms with the IRS. Notified filing for paper files is Feb 28th 2012 and for electronic files is April 2nd 2012).
