For those of you who have contracted work out to other people, and who have paid those people $600 or more in the past year, now is the time to report that to the IRS and to remind the subcontractors that the payments they received are taxable. It is time to issue Form 1099 MISC.
There is a very nifty site, at FileTaxes.com, that will do the mailing to the recipients and the ultimate filing with the IRS. And all for a mere $3.79 per form–which is tax deductible since you are a business.
You enter the pertinent information:
- your name,
- your address,
- your social security # (or employer’s identification number),
- recipient’s name,
- recipient’s address,
- recipient’s social security #,
- amount paid in Box 7 (Non-employee Compensation)
- you also must enter an “account number” (not optional; you can make one up or use one you already have if you assign #’s to your subcontractors within your accounting system).
If you go into the site with the above listed information, you should be in and out a very, very short amount of time. And best of all? The site will send you an email verifying that your 1099’s have been sent to the IRS.
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Glenna Mae Hendricks. She is an entrepreneur and income tax consultant, so we get lots of good tax tips from her. She is an oenophile (“look that up in your Funk and Wagnall’s,” she says), and a wine enjoyment teacher/guide who also writes wine notes at the Allen’s Retail Liquors site. Her political thoughts (and occasional outbursts of domesticity) appear at Old Feminist and Wild-eyed Liberal.