How to File Form 1099 Online?
Most of the time when tax season comes around, employers provides all of their employees with W-2 forms showing their yearly income. There are some forms of income, however, that are not reported on a W-2. In these cases, companies must file and provide a federal 1099 form. Here are some situations which require form 1099 as well as instructions on how to file form 1099.
Types of 1099 Forms
If you have a relationship with an independent contractor who is not on your payroll, you may need to provide a form 1099-MISC. For example, you may hire a freelance writer to write articles for your company’s website, yet this person is self-employed and receives pay according to a contract rather than a monthly wage. In order for him or her to report income paid by you to the government, he or she must receive a 1099-MISC.
There are several other lesser used 1099 forms, including 1099-INT (to report interest earned on investments), 1099-R (to report withdrawals from traditional IRAs), and 1099-DIV (to report dividends). These forms are also completed by the paying body and provided to the taxpayer who must then report these particular income situations to the IRS. All 1099 forms must be received by the taxpayer no later than January 31.
How to File Form 1099?
In order to create a federal 1099 form of whatever type, you must first purchase software that is capable of properly creating the form. The IRS website maintains a list of such programs that are compatible with its e-filing system. Many of these programs are incorporated into bookkeeping software like Quick Books, so creating 1099 forms may be as simple as a few clicks of the mouse.
Once you are ready to file form 1099, you have a couple of options. Firstly, you can print out the forms and mail them into the IRS the old fashioned way. If you are seeking to save time and a little bit of paper, though, you might instead opt to e-file with the IRS instead using their FIRE (Filling Informational Returns Electronically) system through IRS approved service providers. If you are completing 250 or more 1099 forms, be aware that the IRS requires you to file electronically or else face fines and penalties.