How Do You File Taxes For A 1099 Employee?
If you are an independent contractor, you will receive a Form 1099-MISC by Jan. 31 each year. The 1099-MISC reports the total amount of royalties, rents or non-employee compensation you earned and taxes withheld, if any, from a given company. This information is reported to the Internal Revenue Service. Form 1099-MISC is issued by a company to independent contractors if wages paid to the independent contractor exceed $600 in a calendar year. The information on Form 1099-MISC is used to assist in preparing your personal tax return. Review the 1099-MISC you received from each company for accuracy. Report any errors to the company that issued the 1099-MISC. Determine if you will be preparing a Schedule C or E to report the income included on the 1099-MISC or if you will be including it as an “Other Income” item on line 21 of Form 1040. If you received a Form 1099-MISC from several companies for work you consistently perform and this is a main source of income, you should prepare a Schedul