1099-MISC Forms Guide
1099 tax designations are commonly called information returns. IRS use the collection of these information returns to track revenues. Below is a guide on how to fill it out.
Basically, this form is where you can track your revenues paid to another person for the requested tax year. A gardener for instance keeps your yard clean for $100 a month in one year is equivalent to $1,200 of 1099-MISC. IRS uses this strategy to prove that the lawn mower reported all his earning for the year.
First of, you have to know the proper form in filling up a tax designation. There are various types of 1099 forms and when filling out, be sure to have the MISC version. IRS won’t accept unofficial copies so don’t print the ones you see online. This is because IRS computers will read the forms and if you’re not using the official copy, you will have to fill up another form again. You may get an official copy in libraries, post offices as well as the IRS offices in all branches. To make sure you didn’t get the wrong copy, you to the nearest IRS Office to ask some. The IRS website has a system where you can order the official cope online for delivery.
IRS made the filling out of forms a lot easier. Make your own guide in writing by printing our your own copy and the form and filling it up. Moreover, you may have to provide a total for the payments you made to a person. One form is only for one person and f you are reporting for several people, get different forms for each of them.
Write your name on the top left box of the form. Next, fill up you business name or name followed by your contact number, your address and email. Get your tax identification number and write it down on the boxes. And to the right of your tax identification number, write the tax identification number of the person you are reporting for. On the bottom of the two boxes, write the address and name of that person.
Now write down the total amount. Some are required to fill up the boxes in the middle of the form but you can leave it blank if you don’t have to. You can see the first box which is intended for “1 Rents” Paid rentals that has to be reported shall be provided in this field. For basic fees paid for services within the year, report on box 7. This field is label as “nonemployee compensation.” Use this field if you don’t know that classification of your report as this is the mostly used field.
And viola! You have just filled out your 1099-MISC form. The very last step is to get another hard copy of the form and the cover sheet as well numbered 1069 and you’re good to go.