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Efile IRS Tax Form 1099 Online | Electronic filing of form 1099 Made Easy

Etax1099.com is the IRS authorized efile provider for 1099 tax forms. It comes from a series of tax e-file services provided by yakshna solutions inc, which is a leading provider in the tax industry. There are customized packages available for tax professionals as well as individual filers to report their form 1099's with ease. It provides bulk filing features and customer support over phone, chat and email.

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When is Form 1099-MISC Due? Who do I send it to?

Posted by Admin on 31. January 2017 06:34

Every business needs some kind of help. Businessmen generally hire people for different operations. For example, graphic designers are hired for creating logos for the business and customer service agents are hired for dealing with the sales. If these individuals are used in the form of contractors, they should be given form 1099-MISC. IRS 1099 MISC form is used by the IRS for businesses to report the payments that they make to people who are not employees but who have been paid in exchange for their services. 


When is 1099 MISC Form Issued?

1099 MISC form is issued to someone in following situations:

  • The contractor is paid $600 or more in 2016 tax year.
  • Minimum $10 is paid in broker payments or royalties in lieu of tax-exempt interest or dividends.
  • $600 or more is paid for services, rents, awards and prizes, health care and medical payments, other income payments, cash payments and payments made for the national principal contract to estates, individuals or partnerships.
  • $600 or more is paid to a lawyer

IRS 1099 MISC is also used for reporting direct sales of minimum $5,000 of different consumer products to buyers for resale anywhere excluding permanent retail establishments. In addition to this, you will have to file form 1099-MISC for every individual from whom you have withheld some kind of federal tax income under backup withholding regulations irrespective of the amount you have paid.

10999 MISC Filing Due Date 2016 tax year

The 1099 MISC should be in the hands of the recipients by 31st January 2017. Nevertheless, if any substitute payments have been made in lieu of any proceeds or dividends to a lawyer, you have time till 15th February 2017 for getting the 1099 forms in the hands of the recipients. An important factor to consider in this circumstance is the mailing time. In case you are filing form 1099-MISC manually and you find no data in Box 7, you have time until 28th February 2017 for getting Copy A to the IRS. You have got time till 31st march, 2017 for getting Copy A to the Internal Revenue Service if you are filing form 1099-MISC electronically and you do not find any data in Box 7. In all circumstances, it is necessary for you to have the correct idea about 1099 MISC deadline. The 1099 MISC filing deadline is important in order to avoid penalties.

Who do I Send Form 1099-MISC? 

As per 1099-MISC instructions, you need to issue the form 1099-MISC to every individual who has received a payment of minimum $600 in services, rents, awards, prizes and other income payments. There is no need to e-file 1099 for personal uses. 1099 online filing is one of the best options that you can go for.

How to Correct a 1099 Form? Steps for 1099 Corrections

Posted by Admin on 20. January 2017 02:49

Form 1099 is basically an IRS or Internal revenue Service form that can be used by the taxpayers for reporting certain payments. There are different varieties of this form available for business owners and common individuals ranging from letters A to SA. Nevertheless, it is important for business owners to make use of Form 1099 MISC for reporting the money that they pay to the independent contractors. This form carries information regarding the business and independent contractor that is being paid the money. In the case of any error in the form, it is necessary for an individual to go for 1099 correction at an instant. There is a definite 1099 corrections deadline within which the revised form should be submitted to the Internet Revenue Service, independent contractor, and the state agencies.

how to correct 1099 form

How to Correct 1099 MISC Form?

1099 misc correction involves identifying the type of mistake or error as the first step. The 1099 correction form errors are of two types and they are Type 1 and Type 2. Type 1 error is incorrect payee name, code or dollar amount and Type 2 error is incorrect or missing taxpayer identification number. It can also be the reporting of an invalid address. Once the type of error is detected, the following steps need to be adhered to for correcting the erroneous information on the form.

  • Confirming the error type.  
  • Referring the original 1099 MISC during the corrections. Right information needs to be included as available on the original form.
  • Obtaining another 1099 form MISC from IRS.
  • Obtaining form 1096 from IRS which summarizes 1099 information.
  • Entering the correct information and checking the”corrected” box right at the top of the form.
  • Completing the correct information on 1096 form.
  • Mailing the revised copy of the form to the IRS and independent contractor.

 

Must Know this Tax Preparation Checklist for Filing Your 1099 Taxes 2016

Posted by Admin on 1. December 2016 04:41

Prior to beginning with the procedure of preparing income tax return, it is necessary for you to go through the tax preparation checklist. There are different categories in the 1099 tax preparation checklist and not all the categories will strictly apply to you. Therefore, what you need to do is select the category that applies to you and ensures that you have all the necessary information available. Once you are completely ready to efile 1099 online with the help of this checklist, you will be completely surprised to find the amount of time you will be saving by having all your information beforehand.

1099 Tax Preparation Check List

Important Inclusions of the 1099 Checklist

The 1099 checklist contains the following points that are important to be included when filing 1099 online.

Personal Information

It is necessary for the IRS to have a basic understanding of the individual filing taxes and the one who is covered in the tax return. This can be done by using the dates of birth and social security numbers of your dependents or spouse.

Information about Income

This will include the income from jobs, income from local and state income tax refunds or unemployment, investment income, alimony received and income from farming or business. The income received from the property sale, pension distributions, social security benefits and miscellaneous income. The adjustments to earnings also need to be included. There are different criteria that can help on reducing the income amount that is taxed and these include:

 

  • ·         Energy credits
  • ·         IRA contributions
  • ·         Student loan interest
  • ·         Moving expenses
  • ·         Medical savings account contributions
  • ·         Educator expenses
  • ·         Alimony paid
  • ·         Payments of self-employed health insurance payments

 

There are various other important points that also need to be considered when filing 1099 taxes before the deadline. Therefore, going through the complete checklist is very important.

1099 Form and 1099-MISC deadline for 2016 to 2017

Posted by Admin on 3. October 2016 03:41

1099 forms are related to tax where they are used for reporting various types of payments.  They have certain due dates, after which, they can lead to some severe penalty. These forms are tax documents which are used for reporting some kinds of payments, which are made by financial institutions as well as others, making payments part of their business or trade as per IRS Regulations.

This 1099 filing can be done in two ways. Firstly they can be done manually. Secondly, 1099 filing can be done electronically through the Filing Information Returns Electronically system (FIRE).  These are series of documents which the Internal Revenue Service (IRS) refers by the name of “information returns”. There are various 1099 forms which report the different types of income one may receive the whole year, other than the salary paid by the employer. The entity or the person who makes the payment is responsible for filling out this form and then send it by the 31st of January.

Use of 1099 Forms

Independent contractor income – If someone is working and receiving salary or getting wages, then their employer report their annual earnings on Form W-2 at the year end. However, if someone is an independent contractor or is self-employed, then they will receive an IRS 1099 form from each client who has paid them a specific amount during the financial year. The process for paying 1099-MISC form online is very easy. They are paid electronically through FIRE system. Paying 1099-MISC form online is a good option, as it enables people to process them fast.

Interest and dividend – If someone owns collection mutual fund or stock investments, they will receive an IRS 1099 form for reporting dividends and other incomes from this source. They are not same as the income from the sale of stocks. Rather it is the payment given to shareholders from the profits of the corporation.

1099 Form and 1099-MISC Deadline for 2016

 

 

 

 

 

 

Deadline for 1099 Form

The 1099 filing deadline is extended up to the 16th of February of 2017. However, there has been a new 1099 filing deadline. They must be filed on or before the 31st of January of 2017. If someone who does not meet the deadline, has to face severe penalties for it. If someone is unable to meet the deadline for filing 1099, then they can face penalties. Also, if one is not able to provide reasonable excuses for not meeting the deadline for filing 1099, then they will have to face penalties.

Deadline for 1099-MISC

The 1099 deadline 2017 states, 1st February as the deadline for 1099-MISC. The 1099 deadline 2017 includes March 31 as the deadline for transferring them electronically. Penalties for a deadline varies. For instance, there are different penalties for failing to file at the correct time, an inclusion of incorrect information.

1099 Tax Forms for the Independent Contractors - Forms that Need to be Used while E-Filing

Posted by Admin on 10. September 2016 03:17

Businesses outsourcing their functions to independent contractors need to make the use of specific forms to file taxes. The Internal Revenue Service uses the term Independent Contractor for designating the type of workers who contract their services to different businesses. First of all, businesses need to make sure that there make use of the right tax forms when filing the taxes for their actual employees.

Tax Forms for Independent Contractors

Once the status of an individual receiving payment in the form of an independent contractor is determined, the organisations first step is requesting the contractor to fill form 1099-MISC. this is one of the most primary forms that need to be filed by the independent contractors for coming up with accurate payment of taxes. The threshold for taxable compensation reporting is $600 to the independent contractors for the services that they provide during a tax year. 28th February is the deadline within which form 1099-MISC needs to be filed with the IRS. However, the deadline for filing the form electronically is 31st march. Additionally, employers are required to offer a copy of the form to the independent contractors within 31st January of the year following the payment. Independent contractors have the obligation of paying their income taxes along with their self-employment taxes to the IRS. Nevertheless, it is important for businesses to remain aware about the fact that if the independent contractors do not pay their federal or state taxes, the IRS gets the flexibility of mandating the employers to make payments of the withholding taxes along with interest. 

W-2 Forms for Actual Employees

W-2 forms serve in the form of earned income statements including the total income of the employees. These forms also include the details of specific amount of state, social and federal security taxes which are withheld from the paycheck of the employee. It is important for employees to receive the W-2 form from their employers within 31st January of the particular tax year. However, it is to be noted that the employers have time till 28th February to file the W-2 forms with the Internal Revenue Service. There are major penalties that can be incurred in case the employer does not meet the deadlines mentioned above.

State Requirements for the Independent Contractors

It is also significant for tax payers to remain aware of the different state requirements when it comes to making payments to the independent contractors. The state government can easily be contacted in order to get detailed information about the state requirements on paying taxes by the independent contractors. There can be absolutely no doubt in the fact that independent contractors are a good and valuable resource for the small businesses and this goes special for special assignments and time-limited projects. Therefore, it is necessary for businesses to ensure that they maintain correct record and make right payments while complying with the regulations and the requirements of the IRS.

Comparison Between W-2 Employee and 1099 Self-Employed forms in a Competitive Environment?

Posted by Admin on 14. January 2015 01:19

Employers always choose what the best is for them in moving forward towards distinctive competency. For which the management should play a good role to keep up with the growing competition from other companies. In these circumstances the best manpower who are highly professional is preferred that opens up the great opportunities for w-2 employees with thick purse benefits who must be paid with a net paycheck throughout the year, meaning that tax withholdings are taken on a cheque-by-cheque basis. Employees have the ability to take advantage of sick days, vacation leaves, health and dental insurances, worker’s compensation leaves and pays, retirement, pension, and unemployment benefits but these are all given for a cost of good and efficient work sustainable to help the organization to further grow.

Differences Between W2 Form and 1099 Form

On the other hand, hiring independent contractors who are self-employed and with the rich expertise of valuable experience gained over the years as made them as good professionals or servicemen can impress employers who can depend on their jobs to be done in time through 1099 self-employed. When comparing them with putting w-2 employees by employers on a payroll, business owners can reap the benefits with 1099 self-employed as there is no income tax withholdings, no employment tax employees, no liability for acts of employees, no federal and state discrimination laws covering only employees and no obligation to offer benefits. 1099 self-employed will get paid in full for their services without any deductions but are liable for their taxes through IRS form 1099 when they receive the service fees of $600 or more in a calendar year.

However, while this may all sound too good to be true to employers, there are some practical disadvantages of hiring self-employed workers. For example, there is a basic understanding that independent contractors can choose whether or not they want to come to work without the fear of losing employment. They have the ability to control their own hours, and can typically get things done on their own terms without having to adhere to strict company policies – as long as the work performed has been completed and lives up to the standards that the employer has set out. But many self-employed workers are often tempted by the 1099 self-employed job option because they are told that they will get bigger money. 

They are always enticed by the higher pay without obtaining a full understanding of what their employment status will mean long-term as to the needs of their business survival as self-employed. In the short run that’s absolutely true, however, eventually, independent contractors will actually owe higher taxes than employees. This is because not only will income tax be taken out, but self-employment tax as well. 1099 workers are also expected to pay twice as much for social security and medicare taxes. Independent Contractors as 1099 self-employed can never enjoy some of the benefits that employees have the ability to take advantage of as already mentioned in this blog for employees – nor are 1099 self-employed covered by an employer’s liability insurance and are not also eligible for overtime pay. 

 

Please e-file your 1099 tax forms conveniently through Etax1099.com for this tax season in January 31, 2017.

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Guide of IRS 1099-MISC Form - Know all about 1099-MISC Box-7 and Box-9

Posted by Admin on 7. January 2015 00:20

Box-7 - Nonemployee Compensation- when an employer pays or compensates or spent a minimum of $600 or more to the consultants or independent contractors who are not employees under him who all could be the service providers during the course of the business for which the payments of $600 or more paid or transacted. The consultant, Independent contractor, or service provider or non-employee could be the receiver of $600 or more for services done as an individual, partnerships, estate, or a corporation including Government agencies or 1099 non-profit organizations.

e-File Form 1099 Now - Click here

Services that are rendered in a non-employee capacity are subject to self-employment tax and include payments made to board-of-director chair holders, attorneys performing services directly for the payee, taxable fringe benefits, and expense reimbursements.

Additionally, payments made for an exchange of services between entities in the course of trade or business, including barter exchanges. Other payment types include golden parachute payments which mean substantial benefits given to a top executive in the event that the company is taken over by another firm and the executive is terminated as a result of the merger or takeover.oil and gas working interests, fish purchases for cash, commissions for lottery ticket sales agents. The corporate exemption does not apply to attorney fees, fish purchases for cash, payments made by a federal executive agency. The standard $600 reporting threshold applies to medical and health care payments made to service providers.

Box-9 -Payer Made Direct Sales of $5000 or more-This includes payments made by door-to-door salespersons, online sellers, telemarketers, direct mailers, and so on. One should not enter a dollar amount in this box. The minimum reporting threshold for this box is $5,000 in annual payments.

Register now for e-filing needs of your tax form 1099-MISC.

What is a Form 1099-MISC and How to File 1099-MISC Form?

Posted by Admin on 24. March 2014 00:23

The miscellaneous income is titled as form-1099-MISC.This federal form 1009 is required to file every year as a year-end report. Employers will provide the independent contractors and other non-employees with this federal contractor form 1009 and so that they are required to file informing the IRS of their federal and state income tax information returns. The recent rulings of IRS are incorporated in the form 1009 in a way suitable for certain players are as follows-

• The taxpayer can now have a foreign address. A taxpayer have an EIN but not in the USA

• Box 11 is new, Foreign tax paid on payments reported on form 1099-MISC. Report this amount in U.S. dollars.

• Box 12 is new. Foreign Country or U.S. Possession for which the foreign tax was paid and reported in box 11.

As IRS through their expert stated that "There were a ton of proposed changes to the 1099-MISC form for the last several years. But those changes were rescinded. A provision in the Affordable Care Act (Obamacare) wanted to change the 1099-MISC form which reports $600 in services to "goods and services". That would have really expanded the use of this form. But the new foreign address and tax paid is growing the form as well."

Who Must File Form 1099-MISC? 

Businesses should provide form 1099-MISC for the current year when paid $600 or more in the past year to individuals, independent contractors, and other businesses. $10 or more paid towards royalties and for some direct and indirect sale of any consumer goods to an agent/wholesaler or retailers for resale to the worth of $5000 or more.

Where to Get 1099 Forms?

Form 1099-MISC must be provided to any "nonemployee" to whom you paid $600 or more during 2011. This includes:

1) Payments for rental property expenses

2) Payments to a physician, physicians' corporation, or another supplier of health and medical services. Issued mainly by medical assistance programs or health and accident insurance plans.

3) Payments for services performed for a trade or business by people not treated as its employees. Examples: fees to subcontractors or directors and important payments. 

4) Fish purchases paid in cash for resale.

5) Crop insurance proceeds

6) Gross proceeds paid to attorneys. (Box 14) (Due to IRS February 15th).

Difference Between W-2 and Form 1099-MISC

Form 1099–MISC is given by businesses to non-employees like independent contractors and other small companies towards payments made no later than January 31st. W-2 is given to employees working for an organization by the employer.

Then the businesses have to submit by e-file 1099-MISC forms to IRS on or before February 28th in a calendar year.  Along with Copy A of all the 1099-MISC forms businesses provided to non-employees, one must submit a Form 1096 transmittal form to the IRS which totals all information from all 1099 forms. One should not use the downloaded 1099-MISC copy A from the internet because Copy A of the 1099-MISC form is in a specific color of red ink and cannot be duplicated.

One can submit all forms of 1099-MISC along with transmittal form 1096 (Annual summary and transmittal of US information returns) to IRS. E-file your Form 1099 Online before 1099 deadline 2017!

What is an IRS 1099 Form? - File your Form 1099 Taxes Online

Posted by Admin on 1. January 2014 00:19

Today we are going talk about form 1099 and how to fill out and how to fill out a 1099 form online. We will also talk about who needs to fill out form 1099 online and why it’s important.

What is Form 1099?

Form 1099 IRS forms are used for a variety of different reasons.  The Form 1099-B reports the sales of stocks and bonds and mutual funds.  Form 1099-C is a form to fill out if you have had a debt canceled at any time of the year.  The form 1099- DIV reports all dividends, qualified dividends, and capital gains.  Form 1099-G is to be filled out if any unemployment money was collected throughout the year or if any government funds were given.  Form 1099-INT is the form to fill out if you have any interest to report. 

Form 1099–MISC is the most used form of all 1099 IRS forms because it is used to show how much independent contractors make in a given year. This form will also be filled out in the event of any rent, royalties, and other money collected in this manner.  So if you own a home and rent it out as a landlord you will need to fill out this form to let the IRS know exactly how much rent has been paid each year to you. The form 1099- MISC is used if you work for yourself and do a special service for another business, such as a general contractor hiring you, the plumber to do the work. You will report that income using the form 1099-MISC because the money made needs to be taxed as income. 

What are Other Reports Filed with Form 1099?

The form 1099-MSA is a form to fill out if you have a medical savings account that paid out money to you throughout the year. This account is a special account that allows you to have money used for medical reasons to be not taxed.  This is the form to use to let the IRS know that you utilized these tax savings. Next, is the form 1099-PATR which reports dividends paid by cooperative and 1099-OID reports all original issue discounts.  Form 1099-R reports any money given out to a person from a retirement fund such as an IRA, 401k, or a pension plan. 

Next, we have form 1099-S which report sales from any real estate sold within the tax year.  Form SSA- 1099 reports all Social Security benefits paid out throughout the year through taxes or if you have to pay money through the year due to self-employment.  Form RRB-1099 is the form to use if you are reporting railroad retirement benefits that you may be getting if you worked on the railroad as your career and now get a retirement stipend from the railroad or Railroad Company you worked for.

I hope this article has helped give you a good idea of what exactly you need to fill out the form 1099. There are a lot of different 1099 IRS forms so if you need help please ask us any questions here at Etax1099.com.

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