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1099 tax help is commonly required by small businesses and corporations. An independent contractor will use a number of forms when filing income tax including the 1099 form.
That said, the use of Form 1099 can certainly be a bit confusing and so you may want to speak with an IRS agent for confirmation and/or clarification. In fact, we highly recommend that you make certain you fully understand the purpose of this form and how it applies to your taxes.
Income Reporting
You must report on Form 1099 MISC if payments are made during the course of your business, if you are engaged in a trade for the business of profit, you will more than likely have an income that needs to be reported.
Reportable Payments to Corporations
The main reportable payments are as follows:
You are not required to report personal payments. If you have a profit sharing plan you will need to report it. Form 1099 tax help can be found on the IRS page or you can give them call if you require clarification.
If you require Form 1099 tax help, you aren’t alone as this is quite a complex form and the need for Form 1099 tax help isn’t surprising. There are several exceptions that you should also be aware of.
Exceptions
There are some payments that you are not required to report even though they could be taxable to the recipient. The main exceptions include:
Form 1099 tax help can be obtain directly from the IRS, from your accountant, a tax attorney, or other services that offer assistance with taxation.
That said, the use of Form 1099 can certainly be a bit confusing and so you may want to speak with an IRS agent for confirmation and/or clarification. In fact, we highly recommend that you make certain you fully understand the purpose of this form and how it applies to your taxes.
Income Reporting
You must report on Form 1099 MISC if payments are made during the course of your business, if you are engaged in a trade for the business of profit, you will more than likely have an income that needs to be reported.
Reportable Payments to Corporations
The main reportable payments are as follows:
- Medical and health care payments – Box 6
- Attorneys fees – Box 7
- Gross proceeds paid to the attorney – Box 14
- Payments in lieu of dividends – Box 8
You are not required to report personal payments. If you have a profit sharing plan you will need to report it. Form 1099 tax help can be found on the IRS page or you can give them call if you require clarification.
If you require Form 1099 tax help, you aren’t alone as this is quite a complex form and the need for Form 1099 tax help isn’t surprising. There are several exceptions that you should also be aware of.
Exceptions
There are some payments that you are not required to report even though they could be taxable to the recipient. The main exceptions include:
- Payments for merchandise, freight, storage, and similar items
- Payments of rent to a real estate agent
- Wages you pay to employees
- Business travel allowances you paid to employees
- Payments for life insurance protection
- Payments to a tax exempt organization
Form 1099 tax help can be obtain directly from the IRS, from your accountant, a tax attorney, or other services that offer assistance with taxation.
