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Essential Tips for E-Filing 1099 Taxes
Essential Tips for E-Filing 1099 Taxes
With tax season right around the corner, there is a lot to do to prepare for tax filing. It can be hard to know exactly where to start, and it might be tempting to only prepare when the time is closer. But anything tax-related requires an investment of time and preparation.
Paying taxes as an independent contractor can be confusing, and the process can feel like a full-time job. By following some tips, you can set yourself up for success when filing your independent contractor taxes and finding tax write offs for independent contractors.
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Plan ahead
Planning is an important part of life. Whether you're planning a vacation, your retirement or a new baby, it all requires time, effort and energy to make sure you’re as prepared as possible for each situation. Taxes are no different. They require careful attention and consideration, because the rules can be complicated, and there’s a lot to keep track of, fill out and submit. Planning can help you be sure you have all the information you need to fill a complete an accurate tax return and give you ample time to calculate independent contractor taxes.
If you find that you're missing some 1099 tax forms, you have a few options to find the information you need without the forms. You can contact the company, business or agency that paid you and request another form, or you can look at your bank statements to reconcile the amount.
Online e-filing steps
When you're planning to e-file your 1099 forms, you’ll need to submit them to the Information Returns Intake System (IRIS). By the way, anyone with 250 or more 1099 forms must file online through the IRIS and can’t opt to file manually.
- The first step to filing with the IRIS is to validate your identity by applying for an IRIS Transmitter Control Code (TCC). You can find the application for the TCC at IRS website. The application process takes 45 calendar days to complete, and they will issue you the TCC credentials.
- Log in to the Tax Portal.
- Select the firm or organization you are representing.
- Start a new form and select the corresponding form.
- Select the payment year.
- Fill in the information about the payer.
- Complete the payments page.
- Report state payments and withholdings.
- Select submit.
Get your taxes reviewed by an expert
There’s nothing like having a fresh set of eyes review your tax return. Tax experts are there to help make sure you claim all the tax write offs for independent contractors and take advantage of any possible tax credits. More deductions equal more tax savings, which can offset the cost of hiring a CPA in the first place. Your time is also valuable; having someone available to answer questions can be a big time saver. One small mistake can end up costing you a lot of money, and the IRS can penalize you for math errors or claiming deductions you aren’t eligible for, or for mismatching information. A tax expert can help you avoid any IRS penalties.
With the help of FlyFin, your taxes will be reviewed by an expert team of CPAs, available to help answer every question. Plus, you’ll be covered with full audit insurance. FlyFin can also help you find all the possible independent contractor deductions and calculate your independent contractor taxes.
Types of 1099 forms
There are many different types of 1099 tax forms, but only a few you will probably need to know about to calculate self-employment tax. When you work as an independent contractor, the company or client that hired you will send you a 1099-NEC for any work you performed, totaling $600 or more. This form will help you keep track of all your earned income for the year so you can pay taxes on that income.
- 1099-NEC: This form reports all nonemployee compensation of $600 or more that you’ve received as an independent contractor.
- 1099-MISC: This reports all royalties or dividends of at least $10, payments to an attorney or prize money.
- 1099-K: If you used a third-party payment processor to process business transactions, you’ll receive this form.
- 1099-INT: This reports any interest from a person or entity during the tax year.
- 1099-DIV: If you own investments and you earned dividends, you’ll receive this form.
What’s FlyFin?
FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors.
But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology.
Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes.
In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.
Expert tax CPAs ensure 100%-accurate tax filing
A.I. finds every tax deduction, eliminating 95% of your work
On average users save $3,700
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