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A 1099 tax form is a statement that details an amount of money that you were paid. Learn about this important tax document and the different 1099 versions.
You know, those little sheets of paper showcasing your wages and tax — all the money that’s been taken out of your paycheck. The deadline for employers to send out W2 tax documents was January 31.
Streamline tax season by deciding how you will complete and send 1099s to your contractors.
For a variety of reasons some Form 1099 reports may include amounts that are not actually taxable to the payee. A typical example is Form 1099-S for reporting proceeds (not gain) from real estate transactions. The Form 1099-S preparer will report the sales proceeds without regard to the amount of the taxpayer's "basis" in the real estate sold.
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The form is not mailed to the IRS but retained by the employer. Tax withholdings depend on employee's personal situation and ideally should be equal to the annual tax due on the Form 1040. When filling out a Form W-4 an employee calculates the number of Form W-4 allowances to claim based on his or her expected tax filing situation for the year.
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