1099-B: This form reports the proceeds from broker and barter exchanges, such as stocks, commodities, and securities.1099-INT: The Interest Income form is sent by a financial institution if an individual has earned at least $10 in interest in a year.1099-DIV: This form is used if a person received over $10 in distributions from stock or other securities, including dividends, capital gains distributions, and nontaxable distributions.1099-NEC: This Non-Employee Compensation form is used to report income subject to self-employment tax (i.e., income paid to independent contractors).While there are more than a dozen different 1099 forms, most taxpayers only need to worry about the following: Learn More Today What Is a 1099 Form Used for?ġ099 forms are used to report various types of income outside of payments made to traditional employees, such as interest from a bank, investment dividends, or compensation for freelance work.
If you do, they likely should be classified as an employee and you must use a W-2 to report their earnings. You provide benefits, PTO, and the expectation of an indefinite term of employment.You control how and when the worker is paid.You control how the worker performs the job (i.e., where and when they work, equipment and methods used, etc.).1099 form, consider whether you do any of the following for the individual providing services: If you’re wondering whether to use a W-2 vs. Some of the details found on a W-2 include: Employers are required by the IRS to use W-2 forms to report earnings, withholdings, and other benefits paid to each employee during the previous tax year. 1099Ī W-2, also called a Wage and Tax Statement, is used to report payments to traditional employees. This way, the IRS knows if there’s a discrepancy between the reported income on a tax return and the total income a person actually received. A copy must be provided to the Internal Revenue Service (IRS) and the payee, who must then report that income when they do their own taxes. Add clients, files, notes,įor more, schedule a demo with one of our team members.A 1099 form is part of a series of tax documents used to report payments made to non-employees (i.e., independent contractors, freelancers, or sole proprietors). Response, handling, and billing of these notices. Tax1099 uses over a decade of expertise to guide you through the research, Tax1099 now offers a Notice Management tool for clients who may receive a notice from the IRS. One of the surest ways to protect yourself is through TIN match requests: checking the vendor information you’ve got against the IRS database. Incorrect filing information means the risk of the IRS assigning penalties to your filing or filings. We’ll send reminders to your vendor to fill out their form.Įver heard of a CP2100, or CP2100A? These are notices from the IRS, alerting you to incorrect filing information. With Tax1099’s W-9 eSolicitation feature, all it takes is an email address. The IRS wants to see that you’ve giving it your best. Say that a vendor has been paid for their services,Īnd it’s only now that you’re eFiling that the W-9 information It’s important to keep record of your W-9’s, and even your W-9 solicitations. That’s why we’ve built vendor management tools directly into our platform.Ĭollect vendor information: W-9 eSolicitation We’ve talked with enough small business owners and accountants to know that, often, the hardest part about filing 1099 forms is collecting and verifying vendor information. QuickBooks Dektop Integration to import data and eFile IRS Foms.