Resources:
- Form 1099-MISC (see “Current Products” section for most-recent version)
Why YOU Should Care:
If you worked as an independent contractor or freelancer during the year, you should receive a Form 1099-MISC from anyone who paid you more than $600 over the course of the year. You will need this form to help you calculate your annual tax return for April 15.
What is a Form 1099-MISC?
A Form 1099-MISC is an informational form. The payer fills out three copies – one goes to you, one goes to the IRS, and the last is purely for the payer’s records. This form notifies the IRS of amounts you were paid over the year so they can be sure to look for it on your personal income tax return.
Monies paid to you or withheld by the payer on your behalf over the course of 2012 is divided between 18 categories and shown on the Form 1099-MISC. This ensures that all types of income are treated property (i.e., reported on the correct place) on your personal income tax return.
If you performed freelance work for multiple people, you will receive multiple Forms 1099-MISC.
What do you do with a Form 1099-MISC?
The instructions for the recipient of a Form 1099-MISC (shown here) are very thorough. Specific instructions for each box (or “type” of income as mentioned above) are listed.
If you work with a tax preparer, they will need a copy of all the Forms 1099-MISC you receive for the year. It should be returned to you with your copy of the completed tax return so your tax records are complete.
Due Dates
In most cases, the person who paid you for your freelance work is required to supply you with your Form 1099-MISC by the end of January. While this form is often received via mail, many companies are now offering access to Forms 1099-MISC online, so double-check with the person who paid you if you aren’t sure.
Remember, even if the payer never issues a Form 1099-MISC, you are still responsible for reporting that income. Also, even though Forms 1099-MISC are not issued unless you are paid $600 or more by a single taxpayer, you should report all income, regardless of amount, to ensure a complete tax return.
Have More Questions About the 1099-MISC?
