Don’t miss the deadline for filing 1099’s!
What is Form 1099-Misc?
1099-MISC is the version of Form 1099 that is used to tell the IRS that you’ve paid an independent contractor $600 or more in fees, compensation, rents, prizes, awards, or any other kind of income – that’s $600 or more over the course of the entire year.
Do you need to file a 1099-MISC this year?
This will depend on whether you hired any independent contractors this year, and how much you paid them. If you paid an independent contractor less than $600 over the course of the financial year, you don’t need to submit Form 1099-MISC for them.
Keep in mind that if you’re an independent contractor, you still need to report all of your income, even if you did less than $600 of work for a client and never received a 1099.
If you did pay a contractor more than $600 for services, rent, or for any other type of miscellaneous income payment (including a barter), you need to file a 1099. There are exceptions to this rule.
Don’t file 1099s for corporations
It’s rare, but sometimes an independent contractor will be registered as a C corporation or S corporation. You don’t need to file Form 1099 for a contractor registered as a corporation. You can see whether a contractor is incorporated based on the information on their Form W-9. Request one from any contractor as soon as you hire them. Also keep in mind that corporation names are typically appended with “, inc.”
What is an independent contractor?
An independent contractor is anyone you hire on a contract basis to complete a particular project or assignment.By definition, an independent contractor is not an employee. Common examples include graphic designers, landlords, attorneys, accountants, landscaping and general contractors.
Filing Deadlines for Form 1099
The deadline to file with the IRS and sending a copy of Form 1099 to your contractors is January 31, 2019.
If you need help filing these forms, we are, of course, here to help!