1099 Form Filing for 2011, 2012
If you have received a 1099 form, you must report this income on your tax return. This income was most likely paid to you as an independent contractor, which means that the entity that paid you did not deduct taxes from your pay.
Many different situations qualify for an independent contractor. Most independent contractors are paid on a per job basis. Some occupations that are usually independent contractors are: artists, skilled trade, writers, advertising agents, and some marketing positions just to name a few.
More and more businesses are using independent contractors to help cut down their overhead costs for expenses like health insurance, life insurance, vacation and sick pay.
When receiving your 1099 form, your earned income will be the only amount listed; you will notice that there will not be any deductions taken for anything including federal taxes, state taxes, or social security. It is your responsibility, as the independent contractor, to pay your own tax on these earnings.
The most common form of 1099 is a 1099 MISC. This particular form can also have business deductions used if you have had business expenses to offset some of your tax liability. A business profit and loss form (Schedule C) must be filed with your 1099 to write-off some or all of your expenses associated with your business as an independent contractor.
There are other 1099 forms. A 1099 INT denotes the interest the government may have paid in a particular tax year. A 1099 G form would be used if you had received a tax refund from the government, not referring to an overpayment in taxes, as most tax refunds are issued.
For more information and answers to all of your tax-related questions, visit TurboTax Online today.
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