How to Send a 1099 to a Consultant
The Internal Revenue Service requires that if you pay a consultant or contractor more than $600 in a tax year, you must issue a 1099-MISC income tax form to the consultant as well as file it with the IRS. Filling out the Form 1099-MISC is straightforward and requires little calculation. For your convenience, the Form 1099-MISC also provides copies for the IRS, the consultant and you. You just need to fill it out properly before sending it to the consultant.
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Things You'll Need
- Official Form 1099-MISC
- Consultant's tax information
- Consultant's mailing address
- Stamp
- Envelope
Instructions
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1
Obtain a Form 1099-MISC from the IRS.
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2
Fill out the Form 1099 with your contact and tax information as well as the consultant's information.
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3
Report the total amount paid to the consultant in Box 7 on the Form 1099-MISC.
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4
Fill out Boxes 16 through 18 with any state taxes withheld and Box 4 with any federal tax withheld. This is not common to do with consultants, so few people will need to do this.
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5
Mail Copy B of the completed Form 1099-MISC to the consultant by January 31 for the previous tax year.
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6
File Copy A of the Form 1099-MISC with the IRS by February 28 for the previous tax year either online or by mail.
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7
Keep Copy C of the Form 1099-MISC for your records.
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