Who Needs Tax Form 1099?
IRS Tax Form 1099 is used to report taxable income for independent contractors to the Internal Revenue Service. There are a variety of Form 1099s, and they have different purposes.
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Form 1099-Misc
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The 1099-Misc is commonly used. Businesses use it to report income paid to independent contractors or freelancers, or other payments or reimbursements to a non-employee. You would also use it to report fees and gross proceeds paid to an attorney, royalties, or payments for damages. Usually, you need to report all such payments of $600 or more.
Other 1099s
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Form 1099-INT is used to report interest paid to someone. 1099-R is used for retirement payments and distributions from retirement accounts. 1099-G is used for tax refunds and unemployment benefits.
Who Gets Them
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Usually, 1099s go only to individuals, not corporations or partnerships. Exceptions include medical and health care payments, withheld federal income tax or foreign tax, barter exchanges (Form 1099-B), acquisition or abandonment of secured property (Form 1099-A) and debt cancellation (Form 1099-C).
Who Files Them
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According to the IRS, any individual, corporation, partnership, estate or trust that makes reportable payments must file a 1099 to report those transactions to the IRS, and must also send statements to the income recipients.
Considerations
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The IRS's rules for the 1099 are extensive, so consider consulting IRS publications or a tax adviser regarding any questions or debatable areas.
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References
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