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The self-employed version of the W-2 form is the 1099. Any individual or company that pays you $600 or more in the previous year is required by law to report that payment, known in the tax world as miscellaneous income, via a 1099-MISC form. The form is to be sent to you and the Internal Revenue Service by Jan. 31.
When should you send a 1099?
If you've subcontracted work to someone else and paid them more than $600, you have to send them, as well as the IRS, a 1099-MISC form. The only exception is when your subcontractor is incorporated. Corporations aren't required to receive 1099s, although if you do send one to someone who's incorporated, it's not a problem.
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