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.
Important Inclusions of the 1099 Checklist
The 1099 checklist contains the following points that are important to be included when filing 1099 online.
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.
Posted by Admin on 10. November 2016 23:52
If you wonder what are the IRS tax return filing statuses then it is necessary for you to know that IRS tax return statuses are important. Your tax filing status can have a major impact on the tax benefits that you receive the tax amount that you pay and the standard deduction amount. It might also have an impact on whether you need to file federal income tax return. In this case you will need a federal tax filing status.
List of Five IRS Tax Filing Statuses
Basically, there are five different filing statuses on deferral tax returns. However, there are some important facts offered by the IRS in order to enable individuals in choosing the right and the best filing status.
This is the marital status on the last date of the year and this is your filing status for the entire year. If you find that there is more than one filing status suiting your conditions, you must make the choice of a status that gives you the flexibility of paying the lowest taxes. However, keep one thing in mind and that is filing status for taxes is very important and therefore statuses need to be chosen carefully.
Single Filing Status
This generally applies for individuals who are unmarried, legally separated or divorced as per the state law.
Married Filing Jointly and Married Filing Separately
Married couples might file tax returns together by using this status. Then there is the married filing separately status for filing returns separately.
Head of Household
Head of Household status applies only for individuals who are unmarried and have made payments of more than half of the cost of home maintenance.
Qualifying Widow with Dependent Child
The status applies for spouses with dependent children while meeting other conditions. Determining your correct filing status is very important and this should always be kept in mind.
Alert: Efile your tax form 1099 online at etax1099.
Posted by Admin on 4. November 2016 04:59
1099 K form is basically an IRS information return which is used for reporting some payment transactions for improving voluntary tax compliance. IRS 1099 K needs to be received by 31st January in the prior calendar year of receiving payments:
- From payment card transactions like credit, debit or store-valued cards.
- In the settlement of third-party payment network transactions more than minimum reporting thresholds of gross payments exceeding $20,000 and above 200 transactions.
Form 1099 Reporting Requirements
The 1099 K reporting requirements include that:
1. All payments made in the settlement of the payment of card transactions like credit card.
2. Payments in the settlement of transactions of third party network if the gross payments for participating payee is more than $20, 000 and there are above 200 transactions with participating payee.
The Verification Procedure
The verification procedure is carried out for ensuring that the tax returns are complete and correct by using the following steps:
TIN Matching Program
The TIN Matching Program which is basically an internet based pre-filing e-service can be used for ensuring that the 1099 K tax form that is submitted features the right TIN. This program allows you to carry out the verification of the TIN provided by the taxpayer against the IRS records before filing information returns.
Name control is basically a series of characters that are obtained from the name of the taxpayer and the TIN on electronically filed returns matching the records.
Filing Procedures and Deadline
1099 form online is due for the merchants by 31st January. Additionally, this form is due to the IRS by the dates that follow:
- · 28th February for filing on paper.
- · 31st March for filing electronically.
It is necessary to efile 1099 within these dates for the proper maintenance of records and for standing up to the expectations of the IRS.
Posted by Admin on 25. October 2016 04:46
The annual deadline for the people to file their federal income tax return is 15th April. This is also the deadline for people to pay any taxes that they might owe. As per law, there is an IRS late filing penalty that the IRS can assess to the taxpayers. This means that the penalty is also assessed on the taxpayers who fail to pay the taxes that they owe within remaining deadline. These penalties levied by the IRS are called 1099 form penalties and there are some important facts about these penalties.
Major Facts about Late Filling and Payments Penalties
- Failure to file the late payment penalty might apply if you do not file within the deadline of tax filing. Failure to pay penalty might apply in case you do not pay all the taxes that you owe within the deadline for tax filing.
- Failure to file penalty is something more than just failure to file penalty. One should file his or her tax return within deadline each year even if he or she does not have the ability of paying the entire tax amount owed within the due date. This helps in reducing additional penalty for paying taxes late and interest on tax returns. It is also important to have an idea of other options of payment like instalment agreements and loans for making the payments.
- Penalty for late taxes is generally 5% of the unpaid taxes for each month or part of the month for which the payment is late. This penalty accrues right from the day post the due date of tax filing. It does not exceed 25% of the unpaid taxes.
- In case you fail to pay taxes within the tax deadline, you will normally face IRS late payment penalty of ½ of 1% of the unpaid taxes. This penalty applies to part of a month or each month post due date and accrues from the day post the due date of tax filing.
- You might not face penalty for filing taxes late if you have requested for time extension for filing your income tax return and made the payment of minimum 90% of your owed taxes within time remaining. However, it is important for you to pay remaining balance within the time extension granted.
- In case you file your tax return more than 60 days post the extended due date or the due date, the minimum penalty filing taxes late is less than 100% or $135 of unpaid taxes.
- If you are able to show certain reasonable causes behind not being able to pay the taxes or efile the tax returns on time, you might not have to pay such penalties.
Posted by Admin on 17. October 2016 23:23
1099 forms are a type of tax documents which are used for reporting certain kinds of payments which are made by financial institutions. These forms are used in U.S.A for preparing and filing information returns for reporting various sources of income other than salaries, wages, and tips. They can be filed through two ways mainly. Firstly, they are sent manually. Secondly, they are sent electronically through Filing Information Returns Electronically System (FIRE). These series of documents are named by the Internal Revenue Services (IRS) as “Information Returns”. There are multiple such forms which report various kinds of income, which people receive in the whole financial year. However, this excludes salary from employers.
What’s New in 1099-INT Instructions
According to the new instructions implemented for 1099-int form, the form needs to be filed on or before 31st January of the year 2017, in the case of reporting compensations provided to non-employees in box 7. Otherwise, people can Efile the 1099-int form by 31st March 2017. There have been no changes to the due dates for furnishing payee statements.
Adding to these 1099 int instructions are some more 2016 general instructions for some information returns. They include information about who should file when to file, where to file etc. 1099 int instructions also state the miscellaneous payments one have paid to each person.
Some Old Aspects for Instructions
Form 1099 int instructions also state one must report any direct sale of consumer products to buyers for resale to any place except permanent retail establishments. One important point to be noted in the form 1099 int instructions is that people should report any federal income tax which they have withheld, regardless of them being included in this instruction. These instructions should be read very carefully by people.
The IRS form 1099-INT includes instructions like reporting incomes made from people’s business or trade. The IRS form 1099 int excludes personal payments from reporting. So NGOs should not file this form since it requires profits or gains for an organisation and NGOs do not engage in profits.
1099-MISC excludes many payments which are not required to be reported, although they may be subject to taxation. Payments which do not require 1099-MISC forms include payments done to corporations, payments done for merchandises, payments of rent to real estate agents, wages paid by employers to employees, Travel allowances paid by business firms to employees etc. The process of paying 1099 form online is very easy and less time consuming. For reporting a 1099 form online one has to have a FIRE Transmitter Control Code. Entities or people, who are responsible for payments, also creates and fills up these forms. Then they send them as per the 1099 form deadline provided in the instructions for these forms. Delay can cause penalties.
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.
Posted by Admin on 23. September 2016 05:21
No one likes to hand over their hard-earned money in taxes. The following tips will help you in saving money if you are self-employed or work on a freelance basis.
What is Self-Employment?
If you have a business of your own, then you will fall in the category of self-employed people. Maintaining a business is not easy as you need to keep a watchful eye on different kinds of paperwork. But when it comes to tax deductions, you have far more avenues to cream the opportunity. To get the most out of the tax benefits and deductions, you need to know about the self-employment taxes and the ways in which you can keep the money in your own pockets.
What is Freelance Employment?
For those people who fall into the category of freelance workers, life is magical, to say the least. They are their bosses and can work when they feel like. There is no restriction on them. But even they are subjected to some taxation. They too fall under the IRS self employment tax category, as they are earning something.
Useful Tips to Reducing the Taxes for Self-Employed People
If you are looking to know how to reduce self-employment taxes, then this is the article you need to refer to. If you know, the ways you can benefit a lot from the tax deductions for self employed people. The following are some tips, which will help you in saving on the taxes:
• Medical Insurance Concessions
You can deduct medical coverage premiums for yourself, your life partner, and your wards as conformity to wage. This incorporates premiums for long haul care protection. The arrangement does not should be in the business name – it's deductible regardless of the fact that it's in your name.
• Keeping it Simple
Unless you have to shape an organization or an enterprise for reasons unknown, stay with a Schedule C, Sole Proprietorship. It's the least complex approach to record, and there's nothing you need to disband that you precede towards something else. In case you're searching for legitimate assurance, get the protection of the law.
• Automated Recordkeeping
Little business record keeping doesn't need to be as hard as it used to be. Shoeboxes, brimming with folded receipts ought to be a relic of days gone by. Use individual fund programming that is synchronized to your ledgers. Programmed record keeping spares you time, as well as it's less inclined to failures.
• Itemized and business deductions
By taking trade reasoning rather than an organized concession, you diminish your balanced gross salary and your independent work charge. At whatever point conceivable, deduct a cost or a bit of a cost as an operational expense. This will help you in getting real self employed tax return benefits.
There are many other ways, which will ensure that your money stays in your pocket. Paying taxes in time is the duty of every honest citizen. One must not shy away from paying taxes but keeping a close watch at increasing savings is also important.
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.
Posted by Admin on 25. August 2016 04:28
The IRS 1099-MISC form reports certain type of payments during the fiscal year to the IRS. It includes rents, royalties, prizes and awards etc. ETAX1099 is an IRS certified tax e-filing service partner, with user-friendly matched software, it deals with the taxes payable on your miscellaneous income apart from salaries, wages and especially in case of independent contractors, say employers/payers and small business owners.
Here is a graphical representation for e-filing your 1099 MISC form online with ETAX1099. By following these simple and easy steps you can file your 1099-Misc tax online. If you have any queries when you are e-filing 1099 taxes you can get in touch with our customer support team. They will help you 24/7 regarding any queries related to 1099 taxes. Head over to ETAX1099.com and e-file your form 1099 before the deadline to avoid any penalties.
Posted by Admin on 25. August 2016 03:48
Filing tax form 1099 can be a challenging task and this goes common even for the ones who are most experienced in the taxpaying procedure. Thus, what are the methods that taxpayers need to use in order to cope up with this daunting task? The very first thing that tax payers need to do is that they should not take stress and start panicking. Although taxes can turn out to be overwhelming, there are always some steps that can be taken to make it successfully through the filing season. Some of the best tips on saving a good amount of time when filing form 1099 are as follows:
Using a Dependable Filing Service
There are a lot of people who like to skip the DIY procedure and save time when filing their tax forms 1099. These people can always move ahead and take the services of the online 1099 tax efiling service providers offering filing services and submitting the 1099s on behalf of the actual tax payers. There are many options that can be considered by the tax payers. It is always best to go with dependable and cost-effective service providers that have a good repute in the market. Go for providers with support systems for employee payments and independent contractors. You must also choose one where you would not have to bear any extra cost of generating form 1099 at the end of the tax year. There are tax filing service providers that automatically create and even send the form electronically to the contractors. These providers even e-file copies of the form with the tax documents of the contractors.
Taking the Services of a Tax Accountant or a CPA
Certain tax accountants or CPAs do the task of collecting necessary information on behalf of the tax payers and make sure that the 1099s are filed within the deadline. However, it is important for you to keep in mind that these tax accountants or CPAs will charge extra for these services.
Always keep in mind that the Internal Revenue Service is about documentation and nothing else. It is necessary for the tax payers to receive their forms within late January or early February. The form will detail the compensation amount of the tax payer along with the amount of state or federal income taxes. It will also cover the Medicare payroll and the Social security taxes. There are many taxpayers who are completely unsure about the procedure and the steps that they need to follow in paying or filing their tax forms. There are others who do not have any information about the right filing documents that they need to carry or have handy when filing tax form 1099. It is highly recommended that tax payers need to be organized when trying to pay their taxes. They need to make a folder where they can always store their tax related important documents.
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