IRS 1099-MISC form

Miscellaneous Income

What Is Form 1099-MISC Used For?

Form 1099-MISC is one of the most widespread and important tax and wage report forms in the U.S., especially when it comes to regulating the relationships between a business entity and a non-corporate independent contractor. The form is mainly used to report the amount of money paid by a business or company to each of their nonemployee contractors (freelancers).

As a business owner, you’re obliged to provide the form for every person who performed services to you or your company during the previous calendar year. This has to be done for every individual you hire but only if he or she makes more than 600$ per year and is a U.S. resident. After you’ve received a completed 1099-MISC from your contractor, it’s your responsibility to file it with the Internal Revenue Service before the end of the tax season.

Freelancers, on the other hand, are responsible for preparing their 1099-MISC on time. Sometimes, as a freelance employee, you may receive more than one 1099-MISC. In this case, you’ll need to fill out each form separately and send it back to your payer by the deadline which is January 31.

IRS Form 1099-MISC covers a variety of payments. This is where its name (MISC refers to miscellaneous) is derived from. These payments include dividends, rent payments, interest payments, royalties, awards, etc. Let’s take a closer look at what sections Form 1099-MISC consists of and the easiest way to fill them out.

How to Fill Out Form 1099-MISC Online?

You can easily complete a fillable sample of Form 1099-MISC online using PDFfiller’s web-based editor. To begin with, select the relevant printable version of the form in the list and click Fill Now. Technically speaking, the form is subdivided into two main categories or sections. The first section is intended for business and contact information while the second contains numbers.

Open your 1099-MISC in the editor and make sure it’s filled out as follows:

  1. On the left side of the form, a payer indicates his or her business and contact information, i.e. the company name and address as well as TIN.
  2. A contractor fills out their contact and business details (name, address, EIN/SSN number, account number) below.
  3. Use the boxes on the right side of the form to report payments, services and taxes withheld from the contractor’s income.

Carefully read the instructions if you have any questions or concerns about completing your sample of the form. Avoid grammar mistakes and typos (especially in numbers). Double-check the information you’ve entered. Click Done when you’re ready to save your changes and send out the form to a recipient.