1099 Deadline Approaching Quickly...
Posted 01-19-2010 at 08:37 PM by kristinecpa
Updated 01-19-2010 at 08:41 PM by kristinecpa (to re-categorize)
Updated 01-19-2010 at 08:41 PM by kristinecpa (to re-categorize)
The 1099 due date is January 31st (Feb 1st this year since 1/31 falls on a Sunday).
If you are self employed or are an independent contractor then instead of a W-2, you may receive a 1099-MISC showing payments you received for services performed.
Alternatively, if you paid someone to perform services for your business, you may need to issue a form 1099 for them. Basically, you must prepare a 1099-MISC if you paid $600 or more to an individual to perform services for you. Some examples would be web designers, eBay assistants, virtual assistants, affiliates, accountants, etc. You should get the name, address and social security number (or Federal EIN) from any person you expect to send a 1099 for.
You need to send copies of the 1099 to the recipient, the IRS and the state tax department. While you can buy the forms and prepare them manually, I prefer to use an online service called FileTaxes.com.
The recipients copy of a 1099-MISC must be sent by January 31st of each year, with copies sent to the IRS by February 28th.
There are penalties for not filing 1099s or for filing incomplete or incorrect 1099s, so it's important to understand the 1099 reporting requirements.
If you are self employed or are an independent contractor then instead of a W-2, you may receive a 1099-MISC showing payments you received for services performed.
Alternatively, if you paid someone to perform services for your business, you may need to issue a form 1099 for them. Basically, you must prepare a 1099-MISC if you paid $600 or more to an individual to perform services for you. Some examples would be web designers, eBay assistants, virtual assistants, affiliates, accountants, etc. You should get the name, address and social security number (or Federal EIN) from any person you expect to send a 1099 for.
You need to send copies of the 1099 to the recipient, the IRS and the state tax department. While you can buy the forms and prepare them manually, I prefer to use an online service called FileTaxes.com.
The recipients copy of a 1099-MISC must be sent by January 31st of each year, with copies sent to the IRS by February 28th.
There are penalties for not filing 1099s or for filing incomplete or incorrect 1099s, so it's important to understand the 1099 reporting requirements.
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