If you've paid more than $600 to an individual who isn't
part of your business, such as a freelancer, there is a good chance you will
need to fill out and send them a 1099 form. This form is used to properly
report their income to the government, and allows them to calculate the taxes
and other withholding necessary to complete their income taxes. Have a
question? Get an answer from tax advisor now!
Extension Form 4868
Extension Form 4868
Instructions
1 - Determine whether you need to give the worker a 1099 at
all. If the worker earned over $600 from you in the course of business and the worker
was operating as an independent contractor, you will need to fill out a 1099.
2 - Obtain a copy of the 1099 form to fill out. These forms
are typically available at local libraries for free, or call 1-800-TAX-FORM to
be sent a copy in the mail. A link to an informational 1099 is included in the
Resources section below.
3 - Write your identifying information in the
upper-left-hand boxes of the form. This includes your business name and
address, as well as your federal identification number or EIN.
4 - Fill out the contractor's information, which is found
below your information. Write the contractor's Social Security number into the
box labeled "Recipient's identification number," and write his
address information in the boxes below.
5 - Fill out the amount of income the contractor earned, and
any federal income tax you withheld for her, in boxes 3 and 4 on the right-hand
side of the form. In most cases, you will not have held any federal income tax
for the contractor.
6 - Send copies 2 and B to the worker no later than January
31 of the year following the one in which he earned the income. Send copy 1 to
the tax revenue department of the contractor's state no later than February 28.
7 - Send copy A, along with form 1096, to the IRS no later than
February 28. This will cover your reporting requirements to the government. You
may retain copy C of the form for your own records.
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