The widely known information return is also called as the 1099 tax designation. IRS use the collection of these information returns to track revenues. Below is a guide on how to fill it out.
Also called as the independent contractor form, this form shows how much you have paid someone for the questioned tax year. A gardener for instance keeps your yard clean for $100 a month in one year is equivalent to $1,200 of 1099-MISC. This way, IRS keeps track of the revenues reported by the gardener.
In filling up this tax designation, you must first know the right format. Make sure you are using the MISC version as there are many types of 1099 forms. Do not print the copy in the web as IRS will only accept official copies of the form. The official version must be the one you will fill up because it is the only paper that is readable to IRS computers. Official copies are readily available in big libraries, major post offices and IRS offices near you. Most just go directly to the IRS office. You may also order online and have it directly delivered to you.
IRS made the filling out of forms a lot easier. Start by printing a copy of the form with your printer so you can just throw it away if you make a mistake. The next thing to do is add up all the payments you made to the requested person. If you’re reporting for numerous people, get one form for each and fill them out separately.
The form contains a top left box when you can fill up your name. Including your contact detail such as name/business name, phone number, address and email is important. Write your tax identification number next in one digit per box. And to the right of your tax identification number, write the tax identification number of the person you are reporting for. Then, write the address of that person at the bottom of the two boxes together with his name.
The next thing you do is enter the total amount in dollars. The remaining boxes in the middle form are to be filled by some but if you don’t know what’s asked, just leave it blank. You can see the first box which is intended for “1 Rents” If you are reporting for a paid rental, you may write it here. For basic fees paid for services within the year, report on box 7. This field is label as “nonemployee compensation.” Use this field if you don’t know that classification of your report as this is the mostly used field.
And viola! You have just filled out your 1099-MISC form. The very last step is to get another hard copy of the form and the cover sheet as well numbered 1069 and you’re good to go.