How to File Taxes If You Receive a 1099-Misc

Form 1099 is given to independent contractors.

A 1099-MISC is used to denote miscellaneous income including, but not limited to, payments made for royalty, rents and services. There are numerous variations of IRS Form 1099. At year's end, any company that has paid a service provider more than $600 is required to mail him or her a Form 1099-MISC.

Things You'll Need

• IRS Form 1040, with instructions
• IRS Form 1040X
• IRS Form 1099-MISC

Instructions

1. Check to verify that the amount of compensation listed once you receive Form 1099-MISC is correct. If the amount is incorrect, contact the company that sent you the 1099, and request that it resubmit a corrected form to you and the Internal Revenue Service.

2. Fill out and file Form 1040 or 1040NR. 1099-MISC income cannot be used with the short form 1040EZ.

3. Report income from Form 1099-MISC on line 21 of Form 1040. More specifically, the line on which the income is entered on Form 1040 depends on the box in which the income is listed on the 1099-MISC form. Most often, 1099-MISC forms are filed for independent contractors and self-employed persons; in the income is listed on line 21 under "other income."

4. File an amended return. If you receive a 1099-MISC after you have filed your annual tax return, complete an amended return to add any 1099 income. Download a Form 1040X from the IRS at http://www.irs.gov/pub/irs-pdf/f1040x.pdf. Include the 1099-MISC amount on the "Income" section of your 1040X. In addition, add a statement regarding the 1099-MISC in the "Explanation of Changes" section of the of the 1040X. Frequently, including a written statement with your changes will expedite the processing of your 1040X.

   Remember, a 1040X cannot be completed online -- it must be mailed in to your local IRS processing center. If you are unsure which IRS office processes returns for your area, go to http://www.irs.gov/localcontacts/.

Tips & Warnings

• If you have additional questions about completing your tax form, refer to http://www.irs.gov/pub/irs-pdf/i1040gi.pdf.

• Failure to include 1099-MISC income on your tax could lead to penalty and interest charges. The company for which you performed the service will send a 1099-MISC to you as well as to the IRS. If the IRS receives a 1099-MISC indicating you did not pay tax on all your income, you'll be charged additional tax as well as late payment penalties and interest.

References

• IRS: Forms Directory Page

Resources

• IRS:.Form 1099-MISC