Issuing 1099s

Issuing and Receiving 1099 Tax Forms

As tax season rolls around, you may start receiving a variety of tax-related documents. The most common one is the W-2 form, which is a wage statement that you receive from your employer to report wages and taxes already withheld. But you may also have received a variety of other documents, specifically ones that are 1099 tax forms.

Common Types of 1099 Tax Forms

1099 tax forms are primarily used to report to the IRS other types of income you may have received throughout the year. These can include:

  • 1099-NEC: This form is issued when someone has paid you more than $600 for work as an independent contractor or freelancer during the tax year.
  • 1099-INT: If you received interest payments during the year, such as interest on a savings account, it will be reported to you and the IRS on a 1099-INT.
  • 1099-DIV: If you own stocks or mutual funds and you received dividends, you’ll receive a 1099 DIV for both ordinary dividends and qualified dividends.
  • 1099-R: This form is used to report any distributions you may have received from retirement accounts, such as IRAs, pensions, and annuities. While you may owe taxes on a retirement distribution, you will also receive a 1099-R if you did a rollover from one account to another and may not necessarily owe any taxes on that transfer of money.
  • 1099-MISC: You may receive this 1099 tax form if you received any rents, royalties, prizes, or other types of income.

There are many other types of 1099 tax forms that could end up in your mailbox during tax season. If you’re confused about what the form means and if you owe taxes on the amount reported on the form, Moore & Paquette Tax Group has the expertise you need to clear up that confusion.

But what if you have to issue a 1099 tax form to report money you paid to someone else? We can help you with that too.

Issuing 1099 Tax Forms

If you’re a sole proprietor who needs some help for part of the year or a small business who hires independent contractors on a project-by-project basis, if you pay any of those people more than $600 during the tax year and they are not an employee, you will have to report that payment to the IRS and issue a 1099-NEC form.

  • Reporting to the IRS: The deadline for sending any 1099-NEC forms to the IRS is January 31st or the first business day after January 31st if it falls on a weekend or a holiday. They can be mailed or filed electronically.
  • Sending to the Payee: You must also send a copy of the 1099-NEC to the payee by January 31st. You can send it either by regular mail or deliver it electronically.

Most small businesses already have a lot on their plates and issuing 1099s during tax season is an added hassle. Moore & Paquette Tax Group has years of experience issuing 1099 tax forms for small businesses like yours. 

Reach out to us today to help you with all of your small business tax needs, from issuing 1099 tax forms to bookkeeping and payroll. We’re here to make your life easier.

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