1099 tax designations are commonly called information returns. These information returns are collected to monitor each revenue paid. We provide you with guidelines on how to fill them out.
In this form, you will see your revenues for someone at a specific tax year. A gardener for instance keeps your yard clean for $100 a month in one year is equivalent to $1,200 of 1099-MISC. IRS uses this strategy to prove that the lawn mower reported all his earning for the year.
First of, you have to know the proper form in filling up a tax designation. Make sure you are using the MISC version as there are many types of 1099 forms. Do not print the copy in the web as IRS will only accept official copies of the form. The official version must be the one you will fill up because it is the only paper that is readable to IRS computers. The official copies are distributed in big libraries, major post and IRS offices. Ask an official copy in major post offices, IRS offices and in big libraries as well. The IRS website has a system where you can order the official cope online for delivery.
It is actually very simply to prepare the form. Make your own guide in writing by printing our your own copy and the form and filling it up. Moreover, you may have to provide a total for the payments you made to a person. Then, tally how much you have paid for someone.
Write your name on the top left box of the form. Including your contact detail such as name/business name, phone number, address and email is important. Get your tax identification number and write it down on the boxes. Repeat the same for the right box that asks for another tax identification number but this time, write the tax identification number of the one you are issuing the form for. Then, write the address of that person at the bottom of the two boxes together with his name.
Now write down the total amount. Some are required to fill up the boxes in the middle of the form but you can leave it blank if you don’t have to. The box that appears first is the “1 Rents” field. If you are reporting for a paid rental, you may write it here. If you are reporting for a basic fee for the services rendered to you in the year requested, use box 7. This field is label as “nonemployee compensation.” This field is the one that’s commonly requested so if you are having a hard time classifying your report, use this field.
Once you’re done, you may send it and get another hard copy of it together with form 1069 or the cover sheet for your form.