How to File Form 1099-MISC for Contracted
At the end of the tax year, you as a business owner are faced with a multitude of
responsibilities, not the least of which is getting all of your tax forms out to your employees
and contracted workers. One of the forms that you may be responsible for creating is a
federal 1099 form. This form is used to report any amount that you pay to freelance or
contracted workers that provide services for your company and are outside of your employee
payroll. Creating and completing a federal 1099 form is, luckily, fairly uncomplicated.
Following is the basic procedural outline to get you started.
Step 1: Assemble Required Information
You must file a form 1099-MISC for every person to whom you paid over $600 during the
tax year. In order to complete this form, you must have the following information:
• Payer's name and address
• Payer's federal identification number
• Recipient's identification number
• Recipient's name and address
• All income paid
• Any tax withholdings
• Any medical or healthcare payments
• State tax information
This is the information required for the most common filing situations. Once you have all of
these things assembled for your payee list, you are ready to proceed with how to file form
Step 2: Complete Federal 1099
The next step is to complete your 1099-MISC
forms. This can be done by hand or by using an
online service, such as Etax.com. The IRS
requires those submitting more than 250 forms
to do so electronically, but others filing fewer
1099s are highly encouraged to also take
advantage of the online filing system. It has the
advantage of being easier to correct, submit,
and complete, and turnaround time is much
quicker than with manual filing. Additionally, if you are unsure about all the details on how
to file form 1099, services such as etax.com can help you with the process from start to
finish for only a small fee per submission.
Step 3: Submit Federal 1099 Forms
If you are using an online service, submission to the IRS is as simple as a few mouse clicks.
Remember that you must supply a copy of each federal 1099 form to both the IRS and the
payee by a certain date. The deadline for payees is January 31st, and the deadline for the
IRS is February 28th. Once you submit your forms electronically, you will receive E-mail
updates telling you that your forms have gone through, giving you peace of mind that you
have done things correctly.
Filing your federal 1099 forms does not have to be a nightmare or even a nuisance,
especially when you file electronically. Once the process is complete, you can rest assured
that your end of the work is finished and that you won't have to worry about it again until
tax time rolls around next year. If you are considering filing online, know that the entire
filing process will be quick, simple, and easy enough even for novice tax filers.
Visit https://www.Etax1099.com and start
filing your form 1099 tax.