When to File a 1099 Misc?

If you've received a 1099 MISC, it must be filed by April 15th with your normal federal income taxes. If you've paid someone wages under a 1099 MISC, then you need to file your copy by February 1st.

Misconceptions

Some people believe that if an employer doesn't send you a 1099 MISC, then you aren't obligated to report the earnings; you are required to report all earnings, whether you receive a tax form or not.

Significance

A 1099 MISC is used when income is paid and no taxes are taken out; recipients may be subject to self-employment taxes.

Types

There are over 15 different types of 1099 forms, and the 1099 MISC is most often used to pay people who have worked as independent contractors.

Identification

The wages year will be printed in a very large font on the side of the form, just above the term "1099-MISC" The rest of the form is populated with various labeled boxes, with or without numerals in them. These are generally self-explanatory, but the backside of the form explains each field.

Benefits

For an employer, hiring workers as independent contractors means that they have a lot less paperwork, and aren't obligated, in some states, to provide disability benefits. Only certain kinds of workers are eligible to work as independent contractors, however, so consult your state's labor department for specific requirements.

Resources

• Internal Revenue Service - 1099-MISC Instructions and Form