The Ultimate Guide on How to Fill Out a 1099 Tax Form


Tax Form 4868 hourglass dropping sand with the words April 15th Middle Class Dad

As we approach the end of the calendar year, it’s time to think about taxes. Tax season will be here before you know it, and you’re going to have to fill out W-2 and 1099 forms.

A W-2 form is filled out and distributed to all employees. A 1099-MISC is distributed to contractors, but not all contractors may need them.

When do you have to fill out a 1099 and how do you do it?

Read on to find out how to fill out a 1099 tax form and when you need to create them.

Who Gets 1099-MISC Forms?

A 1099-MISC form is required for contractors that you paid during the course of the year for work or services. You have to have paid them at least $600 during the year. If you paid them less and $600 during the year, you don’t need to create a 1099-MISC for them.

What if you hire freelancers through Fiverr, Upwork, or other sites that connect businesses and freelancers?

In that case, you don’t need to send 1099s to the freelancers you worked with. You directly paid Fiverr, Upwork, or whichever service used for those services.

Those sites work with freelancers and are responsible for sending out 1099-MISC forms to them.

How to Fill Out a 1099 Tax Form

Did you learn that you need to fill out 1099s for contractors? Here’s how to fill out a 1099 tax form.

Do You Have W-9 Forms for Contractors?

You may have forgotten about this step when you hired contractors. A W-9 form is necessary to collect the person’s address and tax ID, whether that’s an EIN or social security number.

If you can’t get them to fill out the W-9, document that you made reasonable attempts to obtain it.

Get a Copy of the Form

Your best option to create a professional copy of a 1099-MISC form is to find an online fillable 1099. That will make the process incredibly simple.

Filling Out the Form

Once you find a copy of the form, you’ll start by filling out your business information. You’ll also need your tax ID. That will be entered in the Business Information section.

In the Recipient Tax ID Number box, fill in their EIN or social security number.

You’ll see several boxes for filling in payment information. If you paid for services for a non-employee, you’ll need to fill out Box 7.

Next, you’ll document with you withheld any money for taxes. That’s unlikely because contractors usually pay taxes themselves.

Send the Forms

You need to send these forms to the IRS and to your contractors by January 31 for the previous calendar year. So, if you paid a contractor $1,100 during 2019, the 1099-MISC needs to be completed and sent by January 31, 2020.

Make Tax Season Easy

It’s never easy to do taxes for your business. When you get ahead of the game and learn how to fill out a 1099 tax form, you make your life easier and that of your contractors.

Come back to this site again for more business and financial tips.

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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