Due date to mail 1099 forms to recipients has already passed. It was January 31st 2012. However, businesses and individuals still have time to file 1099 forms with IRS.
1099 forms are used to report various types of incomes other than wages, salaries and tips. Such incomes are reported for employees and form W2 is used for that purpose. 1099 forms are typically issued for those individuals who are not hired by the company as employees but are freelancers/independent contractors’ hired by companies on contractual basis. As an independent contractor if an individual earns $600 and above, then he must receive 1099 form from the business than contracted with him.
There are various types of IRS 1099 forms. The letter that appears after the 1099 denotes the type of 1099 form. Following are the various 1099 forms:
• 1099-A: acquisition or Abandonment of Secured Property
• 1099-B: Proceeds from Broker and Barter Exchange Transactions
• 1099-C: Cancellation of Debt
• 1099-CAP: Changes in Corporate Control and Capital Structure
• 1099-DIV: Dividends and Distributions
• 1099-G: Government Payments
• 1099-H: Health Insurance Advance Payments
• 1099-INT: Interest Income
• 1099-K: Merchant Card and Third Party Network Payments
• 1099-LTC: Long Term Care Benefits
• 1099-MISC: Miscellaneous Income
• 1099-OID: Original Issue Discount
• 1099-PATR: Taxable Distributions Received From Cooperatives
• 1099-Q: Payment from Qualified Education Programs
• 1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts
• 1099-S: Proceeds from Real Estate Transactions
• 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
• 1042-S: Foreign Person’s U.S. Source Income
• SSA-1099: Social Security Benefit Statement
• SSA-1042S: Social Security Benefit Statement to Nonresident Aliens
• RRB-1099: Payments by the Railroad Retirement Board
• RRB-1099R: Pension and Annuity Income by the Railroad Retirement Board
• RRB-1042S: Payments by the Railroad Retirement Board to Nonresident Aliens
• W-2G: Certain Gambling Winnings
Business owners not only mail 1099 forms to recipients but also file a copy of the form with IRS. They also retain a copy of it with themselves. Hence as a recipient or independent contractor, if you think that you can escape from filing your 1099 income, then you are wrong. IRS will already have a copy of it and to safeguard against penalties, it is best you file your 1099 income as tax return using form 1040.
Every independent contractor receiving 1099 form must file for taxes in order to prevent penalties.
Now, there are 2 ways to file 1099 forms. One is to follow the old paper filing method and the other is to use the advanced and more secure method of efiling.
Due date to file 1099 form with IRS if you are paper filing is 28 Feb 2012. But if you are electronically filing 1099 form, then you get 1 month extra time which makes your due date for 1099 form filing 2nd April 2012.
Efiling is much easier and convenient and not to forget more secure and cost effective. Nowadays there are many IRS approved and authorized efile service providers such as 1099online.com offering 1099 form efile services.
So now it’s your choice weather you want to rush to file 1099 forms with IRS using the paper filing method or to file 1099 forms with IRS in just few minutes using the 1099 online form filing method.
1099 forms are used to report various types of incomes other than wages, salaries and tips. Such incomes are reported for employees and form W2 is used for that purpose. 1099 forms are typically issued for those individuals who are not hired by the company as employees but are freelancers/independent contractors’ hired by companies on contractual basis. As an independent contractor if an individual earns $600 and above, then he must receive 1099 form from the business than contracted with him.
There are various types of IRS 1099 forms. The letter that appears after the 1099 denotes the type of 1099 form. Following are the various 1099 forms:
• 1099-A: acquisition or Abandonment of Secured Property
• 1099-B: Proceeds from Broker and Barter Exchange Transactions
• 1099-C: Cancellation of Debt
• 1099-CAP: Changes in Corporate Control and Capital Structure
• 1099-DIV: Dividends and Distributions
• 1099-G: Government Payments
• 1099-H: Health Insurance Advance Payments
• 1099-INT: Interest Income
• 1099-K: Merchant Card and Third Party Network Payments
• 1099-LTC: Long Term Care Benefits
• 1099-MISC: Miscellaneous Income
• 1099-OID: Original Issue Discount
• 1099-PATR: Taxable Distributions Received From Cooperatives
• 1099-Q: Payment from Qualified Education Programs
• 1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts
• 1099-S: Proceeds from Real Estate Transactions
• 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
• 1042-S: Foreign Person’s U.S. Source Income
• SSA-1099: Social Security Benefit Statement
• SSA-1042S: Social Security Benefit Statement to Nonresident Aliens
• RRB-1099: Payments by the Railroad Retirement Board
• RRB-1099R: Pension and Annuity Income by the Railroad Retirement Board
• RRB-1042S: Payments by the Railroad Retirement Board to Nonresident Aliens
• W-2G: Certain Gambling Winnings
Business owners not only mail 1099 forms to recipients but also file a copy of the form with IRS. They also retain a copy of it with themselves. Hence as a recipient or independent contractor, if you think that you can escape from filing your 1099 income, then you are wrong. IRS will already have a copy of it and to safeguard against penalties, it is best you file your 1099 income as tax return using form 1040.
Every independent contractor receiving 1099 form must file for taxes in order to prevent penalties.
Now, there are 2 ways to file 1099 forms. One is to follow the old paper filing method and the other is to use the advanced and more secure method of efiling.
Due date to file 1099 form with IRS if you are paper filing is 28 Feb 2012. But if you are electronically filing 1099 form, then you get 1 month extra time which makes your due date for 1099 form filing 2nd April 2012.
Efiling is much easier and convenient and not to forget more secure and cost effective. Nowadays there are many IRS approved and authorized efile service providers such as 1099online.com offering 1099 form efile services.
So now it’s your choice weather you want to rush to file 1099 forms with IRS using the paper filing method or to file 1099 forms with IRS in just few minutes using the 1099 online form filing method.
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