No one likes filling out tax forms. In fact, the yearly process is a dreaded time period for all taxpayers. Especially for people new to that area of adulthood. Don’t worry, though, what we realized is that, from afar, tax forms may seem overwhelmingly complicated. Once you get a closer look, however, you’ll realize that the process is extremely simple.
That’s why we’ve prepared this quick, simplified guide that explains how to fill out one of the most common tax forms, the 1099-MISC. Without further ado, here you go:
Prepare your documents
By now you should know that the 1099-MISC is concerned with income that’s related to self-employed persons and small businesses dealing with independent contractors. If you’re unsure whether or not you should be preparing a form, check out the IRS website before you go on. Anyway, as we were saying, in order to fill out the form, you’ll need to gather all the business records you’ve kept throughout the year. In other words, it won’t be a bad thing if you keep an organized account of all payments that fall under the category of information required by the 1099-MISC.
Get the form
After making sure that you should be filling out this specific form, and after having all your data ready, it’s time to get the form. Before we go on, you need to know that you can’t download, print, and fill the form by hand. People often use a 1099 generator to fill out the form for them electronically. If you’d rather do it on your own, you can download the form from the official IRS website and enter your information with a PDF editor app. As for those who prefer the good old pen and paper, an approved form could be easily ordered from the IRS or certain stores and offices.
Troubleshooting
The taxpayer ID number is one of the most essential pieces of information you need to include in your form. If the person you’re preparing the form for hasn’t provided a valid number, you need to make sure that you get the correct number. If you can’t, at least keep track of how many times you’ve asked them to fill out a W-9 form (an official request for a tax identification number). If you’re stuck between waiting for a taxpayer ID number and submitting your form on time, just fill in the blanks with zeros. That way, you won’t find yourself in hot water with the IRS.
Such a simple process, isn’t it? If you keep your business records organized, come tax time, you won’t find it hard to fill out the necessary forms. After all, a form is nothing but blank spaces with instructions on how to fill them. If you have the required data with proof of its authenticity, you have nothing to fear. That being said, we must remind you that you need to submit your forms before the deadline, and send copies to all the concerned parties.