Facts about the 2016 1099 PDF template
Contents
- 1 Facts about the 2016 1099 PDF template
- 2 Filling Out 2016 Form 1099 PDF Form
- 3 Why is the 2016 Form 1099 PDF used?
- 4 Who Would Use the 2016 Form 1099 PDF?
- 5 When Should You Use the 2016 Form 1099 PDF?
- 6 What are the Consequences for not Using the 2016 Form 1099 PDF?
- 7 Steps for Filling Out the 2016 Form 1099 PDF Form
- 8 Quick Questions
Filling Out 2016 Form 1099 PDF Form
The 1099-MISC form is used by the Internal Revenue Service (IRS). This form is for the calendar year of 2016. If a taxpayer received more than $600 and it was not included on their W2, this form must be completed. The purpose of the 1099-MISC is to report any miscellaneous income to the IRS. All forms of income must be reported at the end of the year. If you fail to receive a 1099-MISC form from a payer, there can be financial consequences for them.Why is the 2016 Form 1099 PDF used?
The 1099-MISC form is used to report the number of payments from a single person or entity. TurboTax refers to this as non-employee compensation. When you received more than $600 in a single year, you must have this form completed. This dollar amount can include everything from lottery winnings to freelance work. If you have received payments in lieu of a dividend, a 1099-MISC form must be completed. The same goes for attorney fees as well. An attorney who has received a portion of gross proceeds will need to report the income. The payer is the one who will issue the form. It is imperative to keep track of all extra income. This can help you during tax season when you need to file your returns.Who Would Use the 2016 Form 1099 PDF?
A 1099-MISC is the way an independent contractor reports income. It gives the IRS documentation about the person's earnings per year. It is the responsibility of the employer to complete the 1099 form and give it to the contractor. This also verifies that the payee received compensation for their services. All income must be reported to the IRS. If the contractor did not meet the $600 per year amount, it still must be reported at tax time.When Should You Use the 2016 Form 1099 PDF?
The 1099 form is an important form for independent contractors. All contractors need to show their income for the year. Without a completed 1099 form, filling out a Schedule C attachment can be difficult. The one who paid for services should fill out the form. Once it is completed, it must be delivered to the payee. Most companies are diligent about completing the form. If they fail to do so, they can face heavy financial penalties. Independent contractors are not the only ones who need to have a 1099 form. If you have won any type of monetary prize over $600, the form should be completed. This is considered income by the IRS. There is a strict deadline to complete and mail the form. The payee must receive the form by January 31st. The IRS needs to receive their copy by the end of February. If you have questions about issuing a 1099 form, Intuit has a video for you.What are the Consequences for not Using the 2016 Form 1099 PDF?
Independent contractors need the form to report their income to the IRS. If you fail to report the full amount, you could face fines or legal issues. If a company fails to complete the 1099-MISC form on time, there are severe consequences. This form is not one that can be ignored. The payer holds all the responsibility to complete the form. If the form is not mailed by the January deadline, there is a $30 penalty per form. If the forms are not completed by August, the penalty increases to $60 per form. Most payers do complete the form on time to avoid any type of penalties. If you have found that the payer did not send you a form, you need to contact them immediately.Steps for Filling Out the 2016 Form 1099 PDF Form
- You must download the form from the IRS website.
- The form will need to include your Federal Tax ID number. The number is either your Social Security Number (SSN) or Employee Identification Number (EIN).
- The contractor's EIN or SSN must be added to the box.
- You can enter the amount of money that was paid to the contractor. This amount is added under the non-employee compensation box .
- If federal or state taxes were withheld, it must be indicated in box 4 or 11.
- Make sure to add your own contact information to the form.
- The form is completed and can be sent to the contractor.
Quick Questions
The 1099-MISC can be sent to the IRS electronically. If the payer wants to submit by this method, the IRS extends its deadline to the end of March. Once the contractor receives the 1099 form, it can be sent electronically with the tax returns as well.
The IRS needs to have all income reported by the contractor. The penalties are severe for those who fail to report a 1099-MISC. Even if you have made less than $600, it still needs to be reported on your tax return.
You must first contact the payer. They are required by law to complete the form. If you still did not receive the form, you need to report that income to the IRS.
