What is Form 1099?
Form 1099 is one of the variant forms provided by the IRS (Internal Revenue Service) US. Basically the form 1099 is used to file the different types of income excluded from salary, wages, Tips etc. The Form 1099 is applicable for the people who earn income from other sources like property rents, interest, dividends, independent contractors, sales, and other miscellaneous income. Form 1099 is used to report or file the income from 1st January to 31st December of that year.
Who Can File Form 1099- MISC?
Form 1099-MISC is used to file the miscellaneous income earned by the person during the financial year. The income earned from other than salaries, wages, Tips that income is covered under miscellaneous income.
One should file Form 1099-MISC for each person if one have paid during the year.
- If you have paid at least $10 in royalties
- If you have paid at least $10 as broker payments in lieu of dividends
- If you have paid at least $10 as broker payments in tax exempt
- If you have paid at least $10 as broker payments in interest
- If you have paid at least $600 in rents
- If you have paid at least $600 to someone who is not your employee.
- If you have paid at least $600 on prizes and awards
- If you have paid at least $600 on other income payments
- If you have paid at least $600 on medical and health care
- If you have paid at least $600 on Crop Insurance
- If you have paid at least $600 on purchasing fish or other aquatic life
- If you have paid at least $600 to an attorney
- If you have paid at least $600 on fishing boat
- If you have paid at least $600 from a national principle contract to an individuals or partners.
If you have made at least $5000 from direct sales of consumer products.
Who are Exempted to File Form 1099-MISC?
The Payees who receive less than $ 600 from the payer during the applicable year those payees are not required to file.
When was Form 1099 Introduced?
In the year 1918, Form 99 was introduced by the IRS US. Initially the purpose of Form 99 was to file the employees salaries whose pay was above $800 by the employer.
How to Get Form 1099?
Form 1099 is provided by the IRS US, you can download the form 1099 by visiting the official website of IRS.
What is Due Date to File Form 1099-MISC?
Form 1099-MISC is a Income tax filing form which is used to file the miscellaneous income of that particular year. For example, we are in 2019 the ones who are required to file the miscellaneous income for the year 2018 are required to file by the 31st March of 2019 like wise for the last assessment year one has to file by 31st March of next year.
- The due date for the recipient is 31st January
- Due date to submit IRS is last day of February, if you are filing it manually
- Due date to file Form 1099 to IRS through online is 31st March
How to File Miscellaneous Income through Form 1099-MISC?
The IRS is offering different ways to file, one of the easiest way is you can file one through online by visiting the official website of IRS or you can do it manually. Electronic version of filing Form 1099-MISC is applicable for the ones who file 250 or more Form 1099 and the ones who file below 250 Form 1099 they can file through paper.
Filing Requirements for Form 1099-MISC:
- One must submit one Form 1099 for one transaction
- One must make the 3 or 4 copies of each transaction because one copy for the payer, one for the payee, one for the IRS and if required one for the State Tax Department.