Advantages to File 1099 MISC Form: Did you hire an independent contractor to work for you? Or else you made rental payments for office space? Then the payments made to an independent contractor come under miscellaneous income. The miscellaneous incomes are reported in 1099 MISC Form.
Here we’ll provide you service about uses of 1099 MISC Tax Form, payments filed in the Form, why to file 1099 MISC Form, advantages of MISC Tax Form, how to file 1099 MISC Form in 2020 and 1099 MISC Form deadline 2020.
What are the uses of 1099 MISC Form?
The 1099 MISC Form is useful for:
Independent contractor: Independent contractor receives 1099 MISC Form for the payments made on purpose of business or trade like the W-2 for wages received by the employees.
Tax payers: 1099 MISC Form classifies each type of the payments in separate boxes. This helps the tax payer to report the miscellaneous payment made in respective boxes of the Form.
IRS: 1099 MISC Form includes name, address and Social Security Number of the tax payer and the recipient. In a single 1099 MISC Form, the IRS can identify who is the payer, payee of the Form and the type of the payment in a calendar year.
Payments filed in 1099 MISC Form
The following payments are filed through 1099 MISC Forms:
- $10 royalties paid to an individual for the use of the property.
- Deceased employee wages paid to a beneficiary.
- Payments to insurance companies for crop insurance.
- Money payment as prizes or awards that are not for services performance.
Why to file 1099 MISC Form?
The tax payer is required to file 1099 MISC Form to report the payments made in a calendar year with an independent contractor. The payments made are in purpose of profit or non-profit business or trade. Report all the miscellaneous income received along with the information return Form to the IRS.
1099 MISC Form e-filing advantages
Eliminates paper filing:
If the tax payer files 1099 MISC Forms more than 250, then you need to e-file the Form. The e-filing is easy and convenient process. It’s impossible to paper file more than 250 Forms and create burden to the tax payers. To avoid the stress and burden file 1099 MISC Form online.
Accurate process:
E-filing 1099 MISC Form reports the miscellaneous payments to the IRS fast and securely. With a single account, you can file bulk amount of Forms. The accurate information reported through e-filing 1099 MISC Form to the IRS.
Avoids penalties:
In the 2020 tax year, the due dates to file miscellaneous income cleared the confusion. Due to this tax payers can file form 1099 online MISC within the due date. Filing the Form 1099 Online on-time allows the tax payers to avoid penalties. Unexpected penalties not imposed by the IRS.
How to file 1099 MISC Form in 2020?
The most common adaptive method in 2020 is E-filing 1099 MISC Tax Form. You can see most of the tax payers file the 1099 MISC Form electronically. E-filing the Form 1099 is a convenient process and also a secured one.
Filing process of 1099 MISC Tax Form in 2020
Filing method: In the 2020 tax year, the tax payers required to e-filing for more than 250 MISC Forms. As -file 1099 MISC is most commonly used method, file your 1099 MISC Tax Form electronically.
IRS authorized e-file provider: You can e-file 1099 MISC Tax Form securely when the e-file provider site is an IRS authorized one. Check whether the IRS watermarked logo on the MISC Form along with the date of filing.
Form type: As you’re filing 1099 MISC Tax Form, select the Form in the e-file provider site.
Information: Enter the required information to file 1099 MISC Form. This includes payer details, recipient details and payments made. Report all the miscellaneous income on the 1099 MISC Tax Form.
Recheck: Before filing the 1099 MISC Tax Form with the IRS, check whether the details entered correct or not.
Submitting: After rechecking the 1099 MISC Form, submit the Form to the IRS electronically safe and securely
1099 MISC Form deadline 2020
The deadlines to file 1099 MISC Form in 2020 given below:
File the Copy A of 1099 MISC Form by March 31st in a calendar year electronically.
Furnish the Copy B of the Form to the recipient by Feb 1st in a tax year.
Copy C of the MISC Form is kept in records of the payer.
If the recipient required to file 1099 nec online Form with the state, then send Copy 1 of the Form to the State Tax Department.
Have got an idea on advantages of e-filing 1099 MISC Form? Then file your 1099 MISC Form with us and avoid the penalties.