Similar to a W-2 form, a 1099 MISC form is used to report earnings for independent contractors. Information on how much money was paid to an individual by a company for their services in the course of business or commerce is recorded on this form. No disclosure is made of personal payments.
Each employee who received payment from a business throughout the year must have this form filed by the company. The company must issue a receipt to the payee. Additionally, a company must send this document to the IRS, either electronically or physically.
If your business falls into one of the categories below, you must fill out this form if it is operated for profit. Payments to federal, state, or municipal government entities, trusts, cooperatives, and nonprofits also need disclosure.
If a company meets either of these criteria, it must file:
If you plan on mailing your return to the IRS, don’t forget that the deadline is February 28.
The end of March is the cutoff for filing online. However, you only have until the end of January to hand over a copy to your intended recipient.
If payments were made in Box 7, the 1099 form online must be electronically filed by January 31. As before, the payee statement deadline is on the day the statement is actually mailed.