Looking for 1099 Definition?
If you’ve been looking for 1099 definition, look no further. Here, we explain what the Form 1099 is all about. The 1099 form is sent by mail to individuals who’ve received income from sources other than their regular earnings such as a monthly salary. The form should then be filled with information and returned to the IRS.
Employers Resource helps every business at all stages with growth and development. Find out more! Call us today!
Income to be declared through Form 1099
You’re probably looking for the 1099 definition because you’ve heard that certain types of income must be declared and are taxable. Here are some of the types of additional income that must be reported using the 1099 form. Each type of income is differentiated with a letter. For instance, acquisition or abandonment of secured property must be through the form 1099-A; cancellation of debt must be reported using the form 1099-C; Social Security Benefit Statement must be reported using SSA- 1099 and so on. See! It’s not that complicated. If you’ve received a 1099 in the mail, just look for the type of 1099 it is. Figure out the extra income you have made that year that corresponds to the form and report it. If you thought the 1099 definition is going to be hard to interpret, it really isn’t! You’ve received some kind of a special income this year and all you need to do is report it with the 1099 form.
Some mistakes to avoid
Now that you understand what form 1099 means and have the 1099 definition you were looking for, here are some mistakes you must avoid if you’re expecting or have received a 1099 form.
If you started looking for the 1099 definition after receiving the form in your mail, that’s a mistake you’ve already avoided! Indeed, many individuals who’d earned special income during the year forget to check their mail for the form 1099 when it is usually sent out. So check your mail carefully if you’ve earned any kind of extra income. Don’t forget that the IRS gets informed of every legal gain you may have made during the year.
Since you were serious enough to look for the 1099 definition, be serious enough not miss the deadline! Form 1099s are usually sent by January 31st. You have up to the end of February to send your forms to the IRS. Don’t just keep the form in the side and forget about it. Make sure that you fill in all the details accurately and send the form back to the IRS by the deadline.
For business advice, check out our website!