Monthly Archives: November 2017

Tips for Filing 1099-MISC

Tax season is just around the corner. As a business owner, you’ve gotten into the habit of waiting until the last second to prepare those necessary forms. But what if you bucked that trend this year? In the coming weeks, you will want to send annual reports to contract workers you paid in 2017. If you aren’t already aware, Form 1099-MISC is what you are required to send independent contractors. We hope this post will serve as a guide to properly prepare and file the form.

What to Do Before You File 1099-MISC

  1. Check the year on tax forms – The Balance reiterates that the Internal Revenue Services changes 1099’s every year. With that in mind, be sure you have the correct year. Note that if you are sending a contractor a 1099-MISC form for 2017 work in January 2018, use the 2017 form.

  2. Send 1099-MISC to independent contractors, not employees – Remember that this form isn’t to be given to employees. The 1099 form is meant to be sent to outside companies and contractor workers who you paid at least $600 for the year. Full-time employees, meanwhile, should receive a W-2, which we will touch on in future posts.

  3. Ensure you have a W-9 form for each payee – A W-9 form must be completed before you send a 1099-MISC to an independent contractor. What exactly is the purpose of a W-9? Without making it too complicated, it’s used to verify that person’s tax identification number.

  4. Order 1099-MISC forms and use the correct one – Now is the time to order the necessary forms for this tax year. Should you have a payroll service, be sure they have what they need to properly file 1099-MISC forms come January. One quick tidbit on the form itself: You must use the official one. You can’t use a 1099-MISC form you download from the Internet because the red ink on Copy A is unable to be copied.

  5. Check for errors before you submit to the IRS – Folks make a number of mistakes when they go to file 1099 forms. From using the form for the wrong year to sending the form to the wrong company and failing to include all requested information, things happen that significantly delay the process. That’s why it’s imperative to double-check the forms prior to submitting to the IRS.

  6. Record payments in the correct year – This is more complex than it sounds. Let’s say your company is paying a contract worker for the last week in December. However, what makes things tricky is the check was dated in January. So what year should that payment be recorded? Well, that income counts toward January.

More About Form 1099-MISC

Keep in mind that 1099-MISC forms can include rent, royalty, prizes, and awards. Typically, payments made to corporations are not reported on this form. There are exceptions to this rule in some cases. Don’t forget that medical/health care payments and attorneys’ fees must be reported on 1099-MISC forms. All businesses operating for the purpose of making a gain or profit is required to file this form. This includes the likes of nonprofit organizations, trusts, cooperatives, and government agencies.

When is Form 1099-MISC Filed?

1099 preparation is required if a business:

  • Paid at least $10 in royalties, brokerage payments, or tax-exempt interest

  • Paid at least $600 in rent, services, awards, other income payments, and medical payments

  • Paid at least $600 to an attorney

  • Made direct sales of at least $5,000 worth of consumer products

  • Withheld any federal income tax under the backup withholding rules

 

We are occasionally asked the question, “What’s the penalty for not filing Form 1099-MISC?” The answer is this: You can expect the IRS to impose heavy penalties on your business if the form is not filed or filed properly. Be aware that there is a penalty for not providing recipient copies. Over time, the penalty only increases. That said, it’s critical to file as soon as possible.

E-File 1099 Forms Today

Let this be the year you take control of tax season. OnlineFileTaxes.com is the most cost-effective way to file your 1099 forms, including Form 1099-MISC. Thanks to our online tax reporting service, you can file Form 1099 online in minutes.

 

What exactly makes OnlineFileTaxes.com different from other 1099 preparation services? Here are just a few of the major benefits:

  • Allows you to process any number of tax forms, seamlessly and economically

  • Takes away the need to buy and fill out long forms

  • Eliminates the need to invest in software or administrative/IT costs

  • The copy of 1099 Forms is electronically sent to the IRS for fast, simple, and stress-free filing

  • We print and mail recipient copies for you to keep for record purposes

 

It’s time to e-file 1099-MISC. Turn to OnlineFileTaxes.com for all your filing needs this tax season. Let us help you tackle 1099-MISC online.

 

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What to Know About Your W-2 Form

Also known as the “Wage and Tax Statement,” W-2 Forms are an integral part of tax preparation. Your W-2 shows the amount of taxes withheld from your paycheck in a given year. Whether you’re getting a W-2 for the first time or could use a refresher on the form, keep reading to learn more.

W-2 Wages and Withholding

Be aware that you should only receive a W-2 Form if you are an employee. Should you be self-employed or an independent contractor, expect to receive an earnings statement on a 1099 Form instead. For the sake of this post, let’s focus on a W-2 Form. For one, it’s divided into boxes that report numerous items related to your income. When you first receive a year’s W-2, take a close look at box 1. This is where you will find your annual wage and salary payments with the amount of federal tax withheld from it in box 2.

It’s important to know that since only a fraction of your income is subject to Social Security tax, you may find that box 3 report an amount that’s less than the year’s total wages. Wages subject to Medicare and Social Security taxes can also be found in boxes on the form.

What’s Important About Your Tax Withholding?

Take a close look at your next paycheck. When an employer withholds amounts from your paycheck for federal income taxes, those amounts are remitted to the Internal Revenue Service throughout the year. In turn, the amount your employer reports on the W-2 must be subtracted from your tax bill when you prepare a federal return. It’s at this point when you know whether to expect a refund or make an additional tax payment.

Verifying Your Identity

The IRS expects the income you report on your taxes to match the information on your W-2. If it doesn’t, they will want to know why. What a lot of folks fail to realize is that since the IRS gets a copy of your W-2, it already knows if you owe tax and will likely contact you if you fail to file a return. So don’t stand pat if the name or Social Security number on your W-2 is inaccurate. Report the mistake to your employer as quickly as possible so they can resolve in time for filing.

Common Questions About W-2 Forms

Now that you have some additional background information on W-2 Forms, let’s get into some frequently asked questions.

  1. Who needs to file it? – Any employer engaged in a trade or business that pays remunerations for services performed by an employee must file a W-2.

  2. When is it filed? – An employer must file a W-2 if they paid remuneration, including non-cash payments of at least $600 or they withheld any income, Social Security, or Medicare tax.

  3. What’s the deadline? – The deadline to file your W-2 is the end of February if filing on paper. You have a bit more time if e-filing, however, as the deadline is toward the end of March. Employers should know that they have a January deadline to provide employees with their copies.

  4. What’s the penalty for not filing a W-2? – If a business fails to file a W-2, they can expect heavy penalties to be handed down from the IRS. There’s also a penalty should you not provide recipient copies. As with 1099 Forms, penalties only increase with time. That’s why it’s imperative to file as soon as possible.

How OnlineFileTaxes.Com Can Help

Whether you’re a business owner or independent contractor, you don’t have time to mess around with tax forms. That’s where online e-filing comes into play. OnlineFileTaxes.com allows you to send those necessary forms to the IRS for fast, efficient, and simple filing. For years, we have been utilized by small business owners, CPAs, accounting professionals, and individuals. Our team is proud to offer a variety of filing options for your convenience.

So why use us when there are countless other online tax reporting services? For one, OnlineFileTaxes.com allows you to process any number of forms seamlessly and economically. Not only that, but we eliminate the need for expensive software or unsightly administrative/IT costs associated with year-end 1099 processing.

Whether you want to e-file W-2 forms or start on 1095 filing, we can help. Here are some other online tax forms you can expect to find on our site:

Take it from Linda Quinn, one of our recent customers. She says, “Having missed my payroll services deadline, I had to, at the last moment, go online and search for a company to prepare our 1099’s. I selected OnlineFileTaxes after looking at several sites. I was very happy with the price, timeliness, and the end result. Thanks for a job well done. I may use you again this year.”

Don’t let tax season get you down once again. Let OnlineFileTaxes.com help you take charge. Begin the online e-filing process now.

 

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Tips for Filing 1095-B

Form 1095-B revolves around health coverage. Essentially, it reports the type of coverage you have, dependents covered by your insurance policy, as well as the period of coverage for the prior year. Form 1095-B verifies that you and your dependents have at least minimum qualifying health insurance coverage. If for whatever reason you had a break in health care coverage for the tax year, you may have to pay a tax penalty.Keep reading to learn more about filing Form 1095-B.

Minimum Essential Coverage

Keep in mind there is a minimum level of benefits your insurance must provide for you to avoid paying that tax penalty. Here are the types of insurance that provide such coverage:

  • Employer-sponsored health plans – These can include coverage for retirees, as well as “COBRA” coverage for former employers.

  • Government health care plans – Here is where Medicare Part A, Medicare Advantage, Medicaid, the Children’s Health Insurance Program, and other similar plans fall into place.

  • Coverage purchased through the “Marketplace” – Under the Affordable Care Act, these consist of web-based federal and state insurance markets.

  • Any individual health insurance policy you had in place before Obamacare took effect.

What to Know About Form 1095-B

There are four parts to this form. Here’s what you can expect with each:

  • Part I – This identifies the person whose name is on the policy. This would be the name of the employee for an employer-sponsored plan.

  • Part II – If your coverage happens to be employer-sponsored, this part will identify the employer.

  • Part III – This section identifies the insurance company who is providing the coverage.

  • Part IV – This is easily the most extensive part of the form. Part IV lists the people in your household who are covered by the insurance. Be aware that for each name, there is a box that will be checked if the person was covered for all 12 months of the year. If that person wasn’t covered for the entire year, there is a box for each month. Again, there will be a penalty assessed with partial coverage (in the majority of cases).

Why Form 1095-B is So Important

Submitting Form 1095-B is proof that you had coverage required by the Affordable Care Act. But what about the penalties? If you fail to file correct information returns or fail to furnish a correct employee statement, you may be subject to a penalty. Gaps in coverage of three months or less are exempt from the penalty. With that said, the IRS will not impose a penalty for filing incorrect and/or incomplete information if the filer/employer has made the effort to comply with reporting requirements. Those who are uninsured may still be able to avoid a tax penalty if they have an exemption. These are available for several reasons such as financial hardship and membership in certain groups.

 

As far as the deadline is concerned, you must file Form 1095-B by the end of February. However, if filing electronically, the deadline is the end of March. Employees must be provided their copies by the end of January.

Why Choose Us for Online E-Filing?

OnlineFileTaxes.com is an e-file provider approved by the Internal Revenue Service. With us, you can quickly and easily e-file 1099 forms. Feel at ease knowing that your online files will be electronically sent to the IRS for fast, efficient, and hassle-free filing. Whether you’re a business owner, CPA, accounting professional, or individual, you can reap the benefits of OnlineFileTaxes.com.

 

There are plenty of e-file options out there. So why choose us? For one, you can easily manage all of your 1099 tax forms with our do-it yourself online service. Why worry about mailing delays and spending countless hours filling out lengthy forms. OnlineFileTaxes.com does the following:

  • Allows you to process any number of forms seamlessly and economically

  • Removes the need to buy and complete a myriad of forms

  • Eliminates the need to invest in any software

  • Takes away any administrative and IT Costs associated with end-of-year 1099 processing

  • Prints, mails, and electronically files with the IRS once the forms are completed

  • Supports uploading Excel files as opposed to manually filling out forms and being more susceptible to making a mistake

How to E-File

Take your pick between three convenient options:

  1. E-File + print + mail – Let us take care of your e-filing needs with the IRS. We will also print and mail (or e-deliver) copies to recipients.

  2. E-file only – Maybe you have already provided copies to your recipients and just want us to report to the IRS. If that’s the case, this is the ideal choice.

  3. Print and mail only – Allow us to print and mail recipient copies. It could be that you have previously submitted information to the IRS but want us to provide recipient copies. In this instance, this third option makes the most sense.

 

Whether you want to e-file W-2 Forms, 1098-MA, 1095-C, or 1095-B, we can help. Get started e-filing today.

 

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Why Choose Us for Online E-Filing?

OnlineFileTaxes.com is an e-file provider approved by the Internal Revenue Service. With us, you can quickly and easily e-file 1099 forms. Feel at ease knowing that your online files will be electronically sent to the IRS for fast, efficient, and hassle-free filing. Whether you’re a business owner, CPA, accounting professional, or individual, you can reap the benefits of OnlineFileTaxes.com.

There are plenty of e-file options out there. So why choose us? For one, you can easily manage all of your 1099 tax forms with our do-it yourself online service. Why worry about mailing delays and spending countless hours filling out lengthy forms. OnlineFileTaxes.com does the following:

  • Allows you to process any number of forms seamlessly and economically
  • Removes the need to buy and complete a myriad of forms
  • Eliminates the need to invest in any software
  • Takes away any administrative and IT Costs associated with end-of-year 1099 processing
  • Prints, mails, and electronically files with the IRS once the forms are completed
  • Supports uploading Excel files as opposed to manually filling out forms and being more susceptible to making a mistake

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How to E-File

Take your pick between three convenient options:

  1. E-File + print + mail – Let us take care of your e-filing needs with the IRS. We will also print and mail (or e-deliver) copies to recipients.

  2. E-file only – Maybe you have already provided copies to your recipients and just want us to report to the IRS. If that’s the case, this is the ideal choice.

  3. Print and mail only – Allow us to print and mail recipient copies. It could be that you have previously submitted information to the IRS but want us to provide recipient copies. In this instance, this third option makes the most sense.

 

Whether you want to e-file W-2 Forms, 1098, 1099-MISC, 1095-C, or 1095-B, we can help. Get started e-filing today.

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