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Form 1099

1099-form

All There Is to Know About the IRS 1099 Form

Wondering what to do with the 1099 Form you received in the mail? As a freelancer, gig worker or a self-employed person, this 1099 tax form was sent to you because you earned money from a non-employee source.
Here’s what the Form 1099 NEC looks like:
1099-form
The IRS 1099 Form is a way of reporting certain types of income. This important tax document details any earnings you received outside of the salary paid by an employer. If you run a side hustle or are self-employed, you must file tax Form 1099. As we all know, nothing is straightforward regarding the IRS. Since there are many ways to earn additional income, there are many different types of 1099 forms. Reading this post will help you understand everything you need to know about the 1099 tax form including what is a 1099 form, who gets a 1099 and how to get a 1099 form.

Table of contents

What is Form 1099?...Read more

What is the 1099 Form used for?...Read more

Criteria for getting a 1099 form and paying taxes on it...Read more

Types of 1099 Forms...Read more

What to do if you don’t get Form 1099?...Read more

How do you calculate taxes on 1099?...Read more

1099 benefits for different professions...Read more

What is Form 1099?

The 1099 tax form by the Internal Revenue Service (IRS) used to report certain income received during the year. Essentially this tax document is an information reporting form because it reports your income information to the IRS. This is the 1099 form an independent contractor or self-employed person uses.
What is Form 1099?
This form is essential because it reports income that typically does not come from your employer, meaning any non-employee income earned. The IRS matches all 1099 and W-2 forms against your 1040 tax forms. If the IRS checks and the forms do not match, they will send out a CP2000 notice to you stating that you owe more money.

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Form 1040

Form 1040

This is the master tax form that every American, freelancer or not, needs to fill out after the tax year ends.

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US Tax Forms

US Tax Forms

The most important tax credits self-employed and freelancers.

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Form 1099

Form 1099

All self-empoyed individuals and freelancers who earn more than $600 during the tax year use this form to report their income to the IRS.

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Form 1099-NEC

Form 1099-NEC

If you earn an income for your work done as a self-employed individual or freelancer, this form is where you will see that income reported to the IRS.

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Form 1099-MISC

Form 1099-MISC

You will use this form to confirm any payments you received outside of your freelance or independent contractor work, like prize money or money for healthcare.

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Form 1099-K

Form 1099-K

If you received $600 or more in online credit card payments during the tax year, you will need to receive this form in the mail to confirm the payment amounts.

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Form 1040

Form 1040

This is the master tax form that every American, freelancer or not, needs to fill out after the tax year ends.

Share
US Tax Forms

US Tax Forms

The most important tax credits self-employed and freelancers.

Share
Form 1099

Form 1099

All self-empoyed individuals and freelancers who earn more than $600 during the tax year use this form to report their income to the IRS.

Share
Form 1099-NEC

Form 1099-NEC

If you earn an income for your work done as a self-employed individual or freelancer, this form is where you will see that income reported to the IRS.

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What is the 1099 Form used for?

Simply put, the 1099 tax form reports income to the government. Since there are many different types of incomes and ways that income is taxed, the IRS provides several 1099 tax forms for each purpose, with requirements for filing. These forms are helpful for freelancers to report work completed during the year. You will also use Form 1099 to report income from dividends or stocks, earned interest of more than $10 and any money received from the government or real estate transactions.

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Criteria for getting a 1099 form and paying taxes on it

You might be wondering how to get a 1099 form 2022 and when 1099s are issued. Some taxpayers receive Form 1099 in the mail, usually in February. If you haven’t received a 1099 from the client, you could contact them or report the taxes on your own. If you need a physical copy of Form 1099, your local office supply store or accounting firm typically has copies of these forms. The forms are also available on the IRS website. There are different criteria based on who gets a Form 1099. For example, you might get a 1099 Form in the mail if you:
Criteria for getting a 1099 form and paying taxes on it

What is non-employee compensation anyways?

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Types of 1099 Forms

Understanding tax forms is quite the task. There seem to be countless forms, each with very different instructions and criteria. There are over twenty different types of 1099s! But don’t panic; only a few are essential for you to know and understand.

Form 1099-NEC

Form 1099-MISC

Form 1099-K

Form 1099-INT

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What to do if you don’t get Form 1099?

Typically, you should receive your 1099 tax form in the mail in early February. In some cases, you might not receive your 1099. Hunting down the form could cause more complications if the payer had already issued the original document. This could result in a duplicate document which makes things more complex for your tax reporting. So instead, it’s better to report the income on your own. It might require some work by going through your bank accounts, profit and loss statements and possibly any cash tips you’ve earned. Then enter this information on your Schedule C.

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How do you calculate taxes on 1099?

As someone self-employed, it is your responsibility to pay the self-employment tax. Usually, employers split the 15.3% rate, where the employer pays half and the employee pays the remaining half. However, as a freelancer, it’s now your responsibility to pay the 15.3% in its entirety. The good news is that only your net earnings are subject to self-employment taxes. This means your gross income minus any business write-offs.
How do you calculate taxes on 1099?
No need to calculate the total tax amount on your own. You can use this 1099 Tax Calculator to calculate your taxes for you.

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1099 benefits for different professions

While working as a freelancer, you can take advantage of tax deductions to reduce the amount of taxes you owe. If, for example, you contribute more to a retirement savings plan, you can reduce how much self-employment tax (Social Security and Medicare) you owe. In addition, independent contractors may qualify for certain tax deductions that can lower their tax bill. Deductible expenses include home office expenses, business travel expenses and office supplies. Also, 1099 contractors are allowed additional tax deductions called a 20% pass-through deduction, enabling you to deduct 20% of qualified business income.

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Quick tip

Reduce your risk of an audit by making sure the income you report on your 1099 matches the tax documents the IRS receives.

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.
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