1099 Tax Help

Business owners need to know how and when to file a 1099-MISC form with the IRS. Basically, you’ll file this form when you pay outside contractors for services and rents. The IRS relies on it; the 1099-MISC form allows the agency to keep tabs on the amount of income freelance contractors should file on their own returns. Keep a few pointers in mind to ensure a smooth filing period.

When to File

Business owners must submit a 1099-MISC form to the IRS whenever they pay more than $600 to an individual during a calendar year. Download this form directly from the IRS website. Typically, contractors receiving 1099-MISC forms include freelance writers, construction contractors, videographers and most other independent contractors.

Many businesses will have to file hundreds of 1099-MISC forms during a given year. If you file more than 250, the IRS will require you to submit them electronically.

Also file a copy of the 1099-MISC form to the freelance contractors themselves. This tells the contractors how much money they made during the year from a business, a figure they must report to the IRS.

Free Federal Tax Filing Online


The IRS requires that your business file its 1099-MISC forms to the IRS by the end of February. However, you must send copies to the independent contractors with whom you worked by the end of January. This gives these contractors adequate time to use the 1099 information when filing their own tax returns.

Even if businesses fail to send 1099-MISC forms to the independent contractors whom they paid more than $600 in a year, these contractors still hold the responsibility for reporting the income they made to the IRS.

Many Varieties

Although the 1099-MISC is the most common type of 1099 form, the IRS actually uses a wide variety of these forms, most of which the public has little idea exist.

Use the 1099-G is used to report government payouts, for example, and the 1099-S to report proceeds from a real estate sale. File the 1099-INT to report interest income.