If you regularly receive payments from credits or apps like OnlyFans, Twitch, Venmo or Paypal then you may frequently come across the 1099 form. It’s simply an income-sharing form used to report payment to the IRS. For this reason, the 1099 form is used by individuals or companies to report any payments they made to individuals who are not employees, but provide products or services on a contract basis.
Non-employee individuals can be anyone who is self-employed, freelancer or independent contractor. This group of professionals can also be full-time workers and earn income outside of their normal w-2 paycheck throughout a fiscal year. This type of income, which is sometimes referred to as sources unrelated to work, might come from dividends, interest, freelance pay, and other similar sources. This income, because of the form that is used to report it, is referred to as 1099 income in general conversations.
However, let’s dive into its other elements first before we get to the meat of how to obtain a 1099 document and how to use a 1099 tax calculator.
Important features of Form 1099
The main goal of IRS form 1099 is to make it easier for the IRS to collect income information about payments made to self-employed individuals. This is because the IRS wants to collect the right amount of taxes from all American taxpayers.
This is why the Form 1099 is also known as an “information return,” according to the IRS.
Bear in mind that if you’re a self-employed taxpayer, the 1099 form is of little use for you in that you have to file a 1099. Instead you can use all your 1099 forms to accurately report all self-employment income on Schedule C of the 1040 form.
But if you are someone who pays self-employed individuals regularly then you’ll need to send a 1099 form to the IRS for every contract work that you paid for. Not reporting these payments to the IRS can attract some harsh penalties.
Financial institutions, companies or individuals that use contract labor should complete the necessary 1099 forms and mail them to the payees no later than the beginning of February. In a perfect world, you should have your 1099 form by the end of the year or at the start of the next year if you earned more than $400 in a year.
You don’t have to send 1099 forms to the IRS if you are filing as a self-employed taxpayer along with your tax return to the IRS. In case of an IRS audit, you should maintain 1099 records along with your other tax documents.
The IRS Form 1099 comes in 21 different varieties, with some of the more popular ones being Form 1099-MISC, Form 1099-NEC, 1099-K, Form 1099-B, Form 1099-DIV, and so on.
Let’s look at where to receive the IRS Form 1099 now that we are familiar with its essentials.
A Brief summary of how to get a 1099 form
The company that paid a self-employed individual taxpayer for their services or product is required by law to send a 1099 form to the IRS, reporting such payments. The payment can also be made to a business, a bank or can be a brokerage.
When you don’t receive a 1099 form even after getting more than $400, you can reach out to the company you worked with to send you a copy. You should get in touch with the business, organization or client and request if you expect to get 1099 and do not receive one.
The deadline for sending and filing 1099 forms for the companies and individuals that paid for contract work is January 31. The IRS’s official website offers downloads of the forms, and you can get the paper 1099 form from any public courtroom or federal facility.
Many people ask the question – what to do if I lost my 1099. And this article will address your concerns in detail.
We now know how to obtain a Form 1099 and all the 1099 benefits, so there you have it.
1099 forms and taxes
Tax filing can be stressful, but you can cut your work when you use A.I. And FlyFin is one such tool. It’s like the ChatGPT for your tax filing. It’s advanced A.I. finds all the deductions from your account in minutes and you also have access to expert CPA to help you make an accurate tax return. As a company responsible for sending 1099 forms, FlyFin can help you keep track of all your different 1099 forms and also avoid a clash with the IRS and avoid an audit notice.
