Who Files 1099 Form?

1099 tax form is the document that used to provide the informational return to the Internal Revenue Service. It is filed by various individuals in the case, prescribed by the concrete situation. Let us clarify when the sample filed and how often can one person file it.

There are numerous document types, according to the case it is used:

1. 1099-MISC is one of the most often used samples. It reports the funds, more than six hundred dollars per a tax year, paid to the independent contractor.

2. 1099-DIV reports dividends or nontaxable distributions or capital gain distributions that increases ten dollars.

3. 1099-INT is corresponding to its abbreviation, as it is used to report to the Internal Revenue Service all interest earnings, increasing ten dollars.

4. 1099-K is the most applicable for those who make a lot of sales, more than two hundred payments and get more than $20,000 for one year. This document is used when the payments made via online payment processors, like Google Checkout, PayPal etc.

5. 1099-G, the sample, that is filled by the individuals, who receive taxable grants, unemployment compensation, any agricultural payment or state tax refund.

6. 1099-R is also connected with the reporting of state payments like pension distributions, retirement plans etc.

Those are the most frequently used types of 1099 template, but there are even more of them, issued to fulfill every individual case.

What is 1099-MISC Form?

The 1099-MISC form is one the most frequently used by the taxpayers. It is created to fill out a report about the services, provided to your company, including IT support, cleaning etc. In particular, there is a number of spendings, reported in this form:

1. First of all, it covers the real estate rents, used for business purposes.

2. Also, it contains any awards won by the organization, but not by employees.

3. Healthcare and medical payments.

4. If you buy fish from someone, engaged in fish catching or selling the business, report those payments as well.

5. The fishing boat proceeds are also reported in this template.

6. Those who are insured on the crop proceeds need to provide the information about it in the document.

7. The individuals, partnerships or estates, engaged in the notional principal contract are obliged to report cash payments from it with 1099 form.

8. The gross proceeds, of minimum six hundred dollars and more, paid to the attorney are reported here as well.

1099-MISC Form General Recommendations

Everybody knows that the tax period is one of the most difficult parts of the year. We have some recommendations for you to complete your documents as easy as possible:

1. Ask the person or organization, providing the services to you, for W-9 form, as without the information it contains you will not be able to fully complete the sample.

2. Keep careful tracking of all payment operations, made from/to you by any other person as well as the organization. This way you will have everything by hand, in a case you need it.

3. Store all documents in the cloud or computer, and process them with applications or online solutions like PDFfiller, Inkscape, Smallpdf, FormSwift etc.

4. There are no limitations of the forms 1099. Anyone can file per one year as many docs as he/she needs, but all funds included in all forms for the whole year are reported with the transmittal 1096 sample.

5. File all informational reports beforehand. Its deadline is the end of January.

6. Report the payments, connected with your business only.

7. To understand those samples better visit the official IRS website that contains detailed instructions and description of every template variation.