Independent contractors receive 1099 forms rather than W-2s. This is a record of income earned, and taxpayers must take them very seriously because the IRS certainly does. Here are 10 important things to know about 1099 forms: 1. A business usually must issue a 1099 to all the contractors it paid $600 or more during the year, although some exceptions apply. 2. There are many varieties of 1099 forms. They are issued not just for income, but also for interest, dividends, tax refunds, unemployment benefits, and more. 3. Businesses usually must mail out 1099 forms to contractors by the end of January for their previous tax year, with possible exceptions. 4. To keep your information current, contractors should notify businesses of any new addresses or phone numbers. 5. The IRS also receives a copy of the 1099 forms, so don't think you can ignore them. 6. If the 1099 form has an error, contractors should report it to the payer immediately. For example, if the form shows an earned amount of $8,000 when it should be $800, contacting the business is necessary. 7. Contractors should report every 1099 form, even if they disagree with the amount. If they can't convince the payer to issue a corrected form, they should explain the problem on their tax return. 8. Ignoring a 1099 form may result in receiving a Dunning letter from the IRS, billing you for the money owed, such as interest earned on a bank account. 9. Don't forget to also remember state returns, as states receive the same information as the IRS. 10. If a business fails to send you a 1099 form, it is recommended to report the income on your tax returns rather than wasting time and effort calling to remind them. Contacting the business may lead to more trouble than it's worth.
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Who needs 1099-S Form: What You Should Know
It's used to get a fair price paid on a sale of real estate. What: Form 1099-S: Proceeds from Real Estate Transactions Who: Real estate broker or agent responsible for reporting the sale When, where: February 15, 2019. Must be given copies to mortgage bankers by February 17, 2024 ; who: Real estate agent at the Real Estate Brokers Association of America's 2017/18 Annual Meetings Who are Responsible For Filing This Form: Real estate brokers, agents, sellers who receive a full purchase price for real estate (not just a mortgage in foreclosure) and real estate purchasers Where To File: Form 1099-S Information About Form 1099-S Income information is reported on this Form 1099-S. For example, if you buy a home for 150,000 from a family member and are required to report the entire sale in one year; you must report your gross proceeds from the sale of the property of at least 150,000 (180,000 in the case of a mortgage sale). Form 1099-S is a reportable form issued in certain situations by the Internal Revenue Service to tax preparers, real estate consultants, appraisers, and other professionals engaged in the reporting of cash and other income, with an important exception. This form is intended to facilitate the collection of tax-related information from you, your client, and the real estate broker, or other person on whose behalf you work, with the goal of simplifying their efforts to collect taxes from you and the other taxpayer as required by the U.S. Internal Revenue Code, the Federal Estate Tax Act, and the Real Estate Settlement Procedures Act. Information you provide to you clients is considered information “received” by you from someone who is required to report information on Form 1099-S, Proceeds from Real Estate Transactions, and you must disclose it if (a) you and the client are both taxpayers ; and/or (b) the form reports your client's gross proceeds on behalf of you but does not specifically report your income, and you do not have an individual taxpayer identification number for the client.
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