Video instructions and help with filling out and completing 1099 MISC 2018

Instructions and Help about 1099 MISC 2018

Hey everybody it's Michael Rogers the bean counter here and we'll talk to you today about how to complete a 1099 miscellaneous form as a disclaimer I am a CPA but I'm not your CPA so I don't know all the ins and outs of your particular situation I always recommend you get your own CPA or tax preparer to help you with your taxes but this is a good explanation video to kind of give you an overview of how to fill out a 1099 miscellaneous form 1096 and getting a w9 if you're needing to pay independent contractors all right first up who do I have to give a 1099 miscellaneous form to alright there's two big groups of people you're gonna have to give it to will kind of deal mostly on the people you pay over $600 or more you'll see up here that there is one if you have $10 or more royalty or broker payments in lieu of dividends or taxes if interest you have tissue that I'm not gonna speak to that I'm gonna mainly talk about what entrepreneurs and real estate investors have to pay so if you've got more than $600 that you pay in rent services paid to an independent contractor it's not a w-2 employee some other income payments and then there's several other listed top payments here that aren't asked comments such as fish or fishing boat proceeds we're mainly talk about services performed to people who are not your w-2 employees which is box 7 alright so what are the main forms you're gonna fill out when you're dealing the independent contractors first officer w9 form what this form looks like is right here and this is the information you send this out to the contractor you're getting ready to hire and you get them to fill it out and they're gonna fill out their name their address either their social security number or their employee ID number and this is going to give you the information that you're going to need at your end to file a form 1099 and give them their copy of 1099 a little tip here I always recommend you get these before you pay this the subcontractor once you pay them they're not gonna be as likely to give you on these forms and the reason is subcontractors hate paying taxes and they know once you issue them a 1099 the government knows that they've been paid that amount of money and they're gonna have to record that in their income if they don't they're gonna get flagged and they're gonna end up getting audited so once they put once you've they've gotten paid they have very little interest in paint and filling out this form for you the next thing is the form 1099 miscellaneous this is a form you fill out and give a copy or get most of the copies to the independent contractor you keep the

FAQ

How do you know if you need to fill out a 1099 form?
Assuming that you are talking about 1099-MISC.  Note that there are other 1099s.check this post - Form 1099 MISC Rules & RegulationsQuick answer - A Form 1099 MISC must be filed for each person to whom payment is made of:$600 or more for services performed for a trade or business by people not treated as employees,Rent or prizes and awards that are not for service ($600 or more) and royalties ($10 or more),any fishing boat proceeds,gross proceeds of $600, or more paid to an attorney during the year, orWithheld any federal income tax under the backup withholding rules regardless of the amount of the payment, etc.
How many people fill out Form 1099 each year?
There are a few different ways of estimating the numbers and thinking about this question. Data from the most recent years are not available—at least not from a reliable source with rigorous methodology—but here is what I can tell you:The most popular type of 1099 is Form 1099-MISC—the form used to report non-employee income including those for self-employed independent contractors (as well as various other types of “miscellaneous” income)Since 2015, there have been just under 16 million self-employed workers (including incorporated and unincorporated contractor businesses). And the data from the BLS seems to suggest this number has been largely consistent from one year to the next: Table A-9. Selected employment indicatorsNow, the total number of 1099-MISC forms has been inching up each year—along with W-2 form filings—and may have surpassed 100 million filing forms. RE: Evaluating the Growth of the 1099 Workforce But this data only goes to 2014 because, again, it’s hard to find reliable data from recent tax years.In terms of the total number of Form 1099s, you’d have to include Interest and Dividend 1099 forms, real estate and rental income, health and education savings accounts, retirement accounts, etc. I’m sure the total number of all 1099 forms surely ranges in the hundreds of millions.Finally, not everybody who is supposed to get a 1099 form gets one. So if you’re asking about the total number of freelancers, the estimates range from about 7.6 million people who primarily rely on self-employed 1099 income and 53 million people who have some type of supplemental income.If you’re someone who’s responsible for filing Form 1099s to the IRS and payee/recipients, I recommend Advanced Micro Solutions for most small-to-medium accounting service needs. It’s basic but very intuitive and cheap.$79 1099 Software Filer & W2 Software for Small Businesses
Did you fill out the form "1099 misc"? If so, for what purpose? Within the context of work, is it like a contract?
One of the most common reasons you’d receive tax form 1099-MISC is if you are self-employed or did work as an independent contractor during the previous year. The IRS refers to this as “non-employee compensation.”In most circumstances, your clients are required to issue Form 1099-MISC when they pay you $600 or more in any year.As a self employed person you are required to report your self employment income if the amount you receive from all sources totals $400 or more. In this situation, the process of filing your taxes is a little different than a taxpayer who only receives regular employment income reported on a W-2.
How do I know if I should give out a 1099-MISC or a W-2?
First of all, what you “give out” are copies of whatever you’ve filed with the IRS. So what did you file? If you’re asking which you should file . . .You file a W-2 with respect to your employees, and a 1099-MISC to report certain types of payments that you’ve made in the course of your business, including payments to non-e players who you’ve paid to do work for you.Do you have a business? Do you have employees? Did you withhold taxes from their paychecks, and pay employment taxes? Did you file your Form 940 and Forms 941? If the answers are yes, yes, no, no, then get yourself a good accountant or attorney who can tell you what to do, and help you do it.If you have no employees, and all of your workers are supposedly “independent contractors”, then you should file 1099’s, but you should still get yourself a better accountant or attorney, because the’re probably employees and you have bigger problems.
How do can I ask federal and california to take taxes out of the income I make on my 1099 MISC?
Generally, when you work for someone as an employee, that employee-employer relationship puts the burden on the employer to withhold and submit payroll taxes on your behalf.  The form they issue you at the end of year to file your taxes is called a W-2 Form.However, as an independent contractor, no such relationship, legal obligation or withholding/submission mechanism exists.  Instead of receiving a W-2, you'll receive a 1099.  To put in bluntly, you're on your own, buddy.  The equivalent tax submission mechanism comes in the form of you making estimated payments to the federal and state governments on a quarterly basis.  This might be a little tricky, if you have no tax background.Of course, the first and obvious question becomes, "How much do I pay?"The best way to do this is to look at your prior year's tax return.   If your net earnings (i.e. revenue minus business expenses) for last year were $100K and wound up paying $35K for federal and $10K for state, then your federal and state tax rates should be around 35% and 10%, respectively.  Tally up your earnings for each calendar quarter and apply those percentages appropriately.  That is your "estimated" tax liability for the quarter.  Now, make your payment."What happens if I guess wrong?"Not to panic.  You will inevitably guess wrong.  I'm an accountant and I'll guess wrong!  When you file your tax return from the year, you will essentially tabulate your federal and state tax liabilities for the year.  The four estimated payments will be deducted from that liability and you should either pay or owe an insignificant amount to "true up" your account."Where do I get the forms to make my estimated payment?"For federal, the form, along with the instructions are here.  The form is called 1040-ES.http://www.irs.gov/pub/irs-pdf/f... For the state of California, the form, the form is here.  The form is called 540-ES.https://www.ftb.ca.gov/forms/201... Full disclosure: With that said, I am not a tax professional.  You should seek the advice of one, to help guide you in filling out these forms and establishing your effective tax rates.  The advice above is worth what you paid for it. :)
Do you need to fill I-9 form for 1099 contract?
There's no such thing as a “1099 employee.” You are either an employee or you are not. The IRS rules are here Independent Contractor Self Employed or Employee and ICE uses a similar process to determine who is an employee and who is not.While it is illegal to retain a contractor whom you know to be working illegally, you are not required to connect Form I-9 from your independent contractors. You may do so if you wish.Who Needs Form I-9? Explains who must provide Form I-9.
How much does it cost to outsource the printing and filing of 5000 1099 Misc forms?
Most of the larger places in the US will cost you around $4-6 per employee.  5000 is a lot, so I'm sure you'll find someone who will negotiate.  So to do it "right" and full-service from a named payroll company, I'm guessing $20,000.Now retail, maybe $2-3 of that is for e-filing services and $2-3 is for printing/mailing.  So if employees are printing their own, getting emails, or getting links to a secure FTP site, then maybe you can save half of that by not mailing.  Check the rules, but that's pretty common.  For the other half, I'd bet plenty of companies have really good deals, including the IRS--I'd bet money they allow you upload a 5,000 line CSV for free or next to it.Of course there's India and stuff--real outsourcing--but I'd have to quintuple check the legalities of sending employee information across international lines, HIPAA and all that.  And even if an international outsource printed and enveloped it, you'd have to have it flown here to ship, and you'd have to solve the e-file aspect.  As with everything it's a trade-off of how much risk you want to pay to transfer.So negotiating in the real world, I'd bet $10,000 to do it right.  These are guesstimates--not quite guesses, but not quite estimates, but a start for your thoughts.  Hopefully a payroll accountant will strike me down.
Should I have my property manager to send a modified 1099-MISC to separate out each property?
Generally, 1099-MISC or 1099-K are sent per SSN/EIN. So you if use the same SSN/EIN for all your rental properties, regardless if you elect to group the rental activities as per IRC Section 469, then you should be able to just allocate the income from the 1099 to each appropriate property when you report it on Schedule E. I would have records that substantiate however you end up allocating the income. If each property has it's own EIN, then yes I would contact them and try to get amended 1099s, one for each property. The IRS will probably be looking that the full amount is included as rents across all the properties. Be sure to carefully follow the passive activity loss rules and any exceptions to the definition of a "rental activity" (like average guest stay of 7 days or less) and other details outlined in Section 469 and supporting Final and Temporary Treasury Refulations if they apply. Best of luck.
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