Is this still your first time or one of your first time dealing with tax filing on your own? Well, first off, welcome to the world of 1099 forms. Second, before you give up on life, we would like to tell you that preparing your tax forms is nothing but a simple form filling job. Granted, at first glance, it may look like a seven-headed gigantic serpent with flaring nostrils on each head, but once you understand what’s happening, you won’t find it so. To help out, we’ve compiled a 3-step guide to help you with your 1099.
Which 1099 is for you?
The 1099 is a form designed for sources of income aside from salaries and wages. On that particular form, there are several variants. The 1099-INT is the interest income, 1099-DIV is for income received from dividends and distributions, and most popularly, you’ve got the 1099-MISC reserved for self-employed individuals and small business owners. So, before you proceed to the next step, do some research to make sure which variation of the 1099 you should be filling out. If you’re still not sure, contact someone from your local IRS office or visit their website. They’re always ready to help.
Get your form
Let’s get one thing out of the way, you can’t just print out a 1099 and fill it. That’s not how the world works. There are two ways you could get an approved form. You could either order it from the IRS or purchase it from authorized outlets, then fill it out by hand. But, if you’d rather fill it out electronically, you could avoid the hassle and create a 1099 using an online form generator, or you could download a 1099 PDF document from the official IRS website, then fill it out with a PDF editor.
The information you’ll need
Needless to say, you’re going to need to fill out your personal details. Address, name, number, and that sort of information. As for your tax ID number, you should use your business taxpayer ID number if you happen to own a business, but use your social security number if you’re an independent contractor. Since the 1099 deals with income, you’ll be required to provide details like how much you’ve earned, from whom, and the account number you’ve assigned. After that, you need to look up the proper filing procedures and send the finished document to the concerned parties.
See, once you lay out the tax filing procedure and divide it into simple steps, it becomes a lot easier. That’s only because, as we said before, taxes aren’t that complicated, you just need to know what goes where. In time, you’ll be shaking your head at people who are still trying to get the hang of it. Having said that, there’s only one thing left to say. When filling out your information, make sure that everything you include is true, accurate, and present on paper. Good luck and don’t forget to send in your forms before the assigned deadline.