Filling Out 1099-MISC Forms
The widely known information return is also called as the 1099 tax designation. These information returns are collected to monitor each revenue paid. Below is a guide on How To Fill Out A 1099-MISC Form.
Also called as the independent contractor form, this form shows how much you have paid someone for the questioned tax year. Suppose you have a gardener and you pay him $100 for one year to render gardening services, you would have to issue $1,200 as 1099-MISC. This is how IRS makes sure the gardener report all his revenues for the entire year.
Knowing the right form is essential upon filling up the 1099-MISC. Make sure you are using the MISC version as there are many types of 1099 forms. Do not print the copy in the web as IRS will only accept official copies of the form. The official version must be the one you will fill up because it is the only paper that is readable to IRS computers. Official copies are readily available in big libraries, major post offices and IRS offices near you. To make sure you didn't get the wrong copy, you to the nearest IRS Office to ask some. Another hassle-way free of getting a copy is ordering one online from the IRS website.
It is actually very simply to prepare the form. Make your own guide in writing by printing our your own copy and the form and filling it up. Moreover, you may have to provide a total for the payments you made to a person. If you're reporting for numerous people, get one form for each and fill them out separately.
The form contains a top left box when you can fill up your name. Then you have to fill up your general information including your name/business name, phone number, email address and address. Then, write down your tax identification number in the space provided for it. Then write the tax identification of the person you are issuing the form for at the box in the right side. Then, write the address of that person at the bottom of the two boxes together with his name.
Then you have to enter the actual amount in dollars. Some are required to fill up the boxes in the middle of the form but you can leave it blank if you don't have to. You can see the first box which is intended for "1 Rents" If you are reporting for a paid rental, you may write it here. If you are reporting for a basic fee for the services rendered to you in the year requested, use box 7. This one is for the "nonemployee compensation." Use this field if you don't know that classification of your report as this is the mostly used field.
And there you have it! Once you've filled it out, mail the form and get another hard copy of it along with form 1096 which serves as the cover sheet of the forms you're sending to IRS. Look up Fill Out 1099-MISC Form online to get started.
Find out more about tax in general at https://en.wikipedia.org/wiki/Tax.