Filling Out 1099-MISC Forms

1099 tax designations are commonly called information returns. IRS use the collection of these information returns to track revenues. Below is a guide on How To Fill Out A 1099-MISC Form

Basically, this form is where you can track your revenues paid to another person for the requested tax year. A gardener for instance keeps your yard clean for $100 a month in one year is equivalent to $1,200 of 1099-MISC. IRS uses this strategy to prove that the lawn mower reported all his earning for the 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. IRS won't accept unofficial copies so don't print the ones you see online. This is because IRS computers will read the forms and if you're not using the official copy, you will have to fill up another form again. The official copies are distributed in big libraries, major post and IRS offices. Most just go directly to the IRS office. The IRS website has a system where you can order the official cope online for delivery.

Preparing the form is way easier than you think it is. Start by printing a copy of the form with your printer so you can just throw it away if you make a mistake. The next thing to do is add up all the payments you made to the requested person. If you're reporting for numerous people, get one form for each and fill them out separately. 

The form has a top left box for your name, write your name on it. Including your contact detail such as name/business name, phone number, address and email is important. Write your tax identification number next in one digit per box. Repeat the same for the right box that asks for another tax identification number but this time, write the tax identification number of the one you are issuing the form for. Then write down the name of the person and his address below the two boxes.

Now write down the total amount. The boxes running vertically n the middle of the form may have to be filled up by some. 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." This field is the one that's commonly requested so if you are having a hard time classifying your report, use this 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. Learn how to Fill Out 1099-MISC Form here. 

To know more about what a tax advisor can do for you, visit https://en.wikipedia.org/wiki/Tax_advisor.