Tag Archives: Form 1099

Do ADRs Qualify for the Special Tax Rate on Dividends?

What is ADR? ADRs are American Depository Receipts, which are certificates of ownership of ADSs – American Depository Receipts. The term ADRs and ADSs are often used interchangeably. AdSs are shares of a foreign company that are held on deposit by a custodial bank in the US. ADRs are US dollar denominated shares of equity […]

How to Fill Out a 1099 Form

Form 1099 from the IRS is used for reporting income received by independent contractors, freelance workers, and also used to report other forms of miscellaneous income. The 1099 form is used for non-employee income reporting as opposed to the W-2 form used to report employee wages. If any federal income tax has been withheld under […]

When Do I Have to Issue a Form 1099-MISC?

When you are self-employed or have your own business, you must file certain return information for tax purposes, including payments for rent, royalties, and services provided in your business by people who are not your employees. These returns inform recipients of the income they must report on their US federal income tax return. Copies of […]

Detailed Information on Different Types of 1099 Forms

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 […]

1099-B FORM and COST BASIS CHANGES for YEAR 2011-2012

New federal requirements for cost basis tax reporting enacted in October 2008 require accountants to submit accurate and timely cost basis information to investors and the IRS. The change is the result of the government’s efforts to end under- and over-reporting of capital gains and losses, while raising income to support the Emergency Financial Stabilization […]

New Reporting Requirements for Schedule C of Form 1040 for 2011 and Beyond

If you are the sole proprietor of a business and you file Schedule C with your federal income tax return, you will notice a new line on the schedule starting in 2011. In Part I, line 1a is for “Merchant card and third party payments”. It also indicates that you should enter -0- for 2011. […]

What to Do with a Form 1099-Q on Your Tax Return

If you take money out of a Coverdell Education Savings Account or a 529 savings account, you should receive a Form 1099-Q to report the distribution. If the entire amount of the distribution is used to pay qualified education expenses, the distribution would not be subject to federal income tax and you would not have […]