IRS Federal Tax Form 1099 for 2009, 2010
If you own your own business and sub-contract yourself out to render services to a client of yours then, they may give you a 1099 tax form at the end of the year. Their accountant will send it to you with all of the accurate information.
This 1099 Federal tax form will have the name of their corporation, LLC or business name and it will also have your information on there also. The total amount of money you made from them will be the information the IRS will count as income made by you.
Other than Wages Salaries and Tips
The 1099 federal tax form is used to report income to the government that does not come from wages, salaries or tips. Two papers will be made, one for the payer and one for the payee. The 1099 form is usually used by independent contractors who are non-employees. If you have paid a contractor at least $600.00 for the year then, you will give him or her a 1099 form. If you have received $600.00 or more from a client you rendered services to then, you should receive a 1099 form from the client.
Electronic Filing
If you are the payer and you have 250 1099 forms or more, you must file them electronically. If you have less than 250 and you file in paper form then, you must also submit a 1096 form which is a summary of all the 1099 forms. For more information on all of the 1099 forms, you may want to refer to Publication1220.
Payee, Freelancers, Sole Proprietorship, Self-Employed
If you are the payee then, you will use the information on the 1099 form to complete your own income tax return form. You will have to attach the 1099 form to your tax return. What you will probably do is file a 1040 with a Schedule C attached. This is the way most self employed (Sole Proprietorship) people file their taxes. This may sound confusing but, it’s really not and plenty of help is available to help you do this with accuracy.
Filing Federal Tax Form 1099
If you own your own business, I would advise you to check out TurboTax Online. The Home and Business Edition is the perfect choice for self-employed people.
The income tax return software will help find all of the business deductions you deserve. This includes home office expenses, vehicle deductions, supplies, utilities and many more you probably would have never thought of. They even have extra guidance for a new business. Let the tax experts make this easy for you! Don’t you have enough on your plate already?
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