|
If you are a freelance or contract worker you've probably received a 1099 form for your services for the year. But did you know that there are many 1099 forms created by the IRS to report income? Your actions throughout the year can determine whether or not you will receive on of these types. And if you do happen to get one you'll need to make sure that it is reported no matter which versions you receive. This article lists three types of 1099 forms that you are most likely to see. 1099MISC This is the most popular 1099 form. If you are a contract worker or are working freelance for any company and don't receive a W-2 form then you wil probably get a 1099MISC form for the year. You generally are paying for your own insurance, and don't get any retirement benefits. You will also not have any state or federal taxes removed from your payments. So you will need to pay for these out of the income that you've attained. Medicare is also not deducted either. If you earn over $600 during the course of the calendar year (January to December) you need to make sure that you pay this as Uncle Sam will. As the saying goes nothing is certain except death and taxes. 1099INT If you have a savings account at your local bank or credit union you'll get this as a statement from these institutions to confirm what you earned with them for the past year. It may only be a small amount, but they are required to send this statement. They not only send a copy to you, but they keep a copy for their records and send one copy to the US government as well. 1099G If you've gotten a refund from the federal government you'll generally get this type of 1099 form. They want to make sure that you include this amount the next time you file your taxes. No amount is insignificant when it comes to taxes. All figures are included in your total amount. Many people don't know about all the various 1099 forms that are created by the IRS for the federal government. These forms were created as they didn't fit the category for those which earn wages from jobs. These were created to show income received during the year that people could provide to file their taxes. The 1099MISC form is the most popular and used by employers or businesses to help keep their overhead employee expenses low. The 1099INT is provided to those persons that have earned interest income whether from a banking institution or from stock dividends. You will even get a 1099 if you subtract funds from your IRA or 401k earlier than the mandated age determined by the IRS. You can also get a 1099 just for get a refund from the government. This might seem a bit ironic but they too will keep track of income that they've sent you. Just make sure that you keep track of it as well.
Learn more about Federal Tax Forms and TaxReturnCalculator.org.
|
