Tag Archives: 1099 online

What To Do If You Miss The Deadline For Filing Your 1099s

What To Do If You Miss The Deadline For Filing Your 1099s

No one enjoys filing tax forms, but for a business owner, this task is a must. While procrastination can happen to the best of us, failing to file your 1099s in a timely manner can be a costly mistake. If you are facing down tax season and you aren’t sure what deadlines you need to meet or what happens if you miss them, we are here to help. Our goal is to make filing 1099s a simple and fast process so that you never have to face the dilemma of missed deadlines. Read on to learn more about what deadlines you need to meet and what will happen if you do not get your paperwork in on time.

January 31: An Important Date To Remember

One of the most important deadlines for you to keep in mind in regards to filing 1099s is January 31. This is the date by which most of your forms will be due. Not only is it vital that you have submitted and filed these forms with the IRS by January 31, but this will also help ensure that recipients receive their copies by the proper date as well.

While it may feel like an overwhelming task, procrastinating filing your 1099s is a disastrous choice with hefty consequences. Be sure that you clearly understand all relevant deadlines and that you start the process early. You can begin filling out all the information in December to prevent missed deadlines.

Reasons You Might Be Penalized

There are multiple reasons why you might wind up being penalized by the IRS in regards to your 1099s. If you miss the January deadline, you will be hit with fines for every late 1099 form. This can quickly add up if you have hundreds of 1099s to submit, which is why handling it in a timely manner is vital.

Another reason you might be penalized is for not providing adequate information to the IRS. Make sure that you fill out the forms completely and that you do not skip over any vital information. Missed information can also lead to hefty fines.

Finally, you can be penalized for filing 1099s with incorrect information. Any corrections you need to submit after the January deadline will cost you in fines and fees. Learn more about the specific penalties you might be subject to on our Penalties for 1099s page.

Reasonable Exceptions

While submitting your forms late, incomplete, or with incorrect information can all be the cause for major fines from the IRS, there are situations where you can get out of these fines. In the case where you had a viable reason for messing up the forms or submitting them late, you can get the fees waived. In order to do this, you will need to document your reasoning and submit it to the IRS. You will need to prove to the IRS that your mistake was due to a reasonable cause, not because of your own negligence. Unfortunately, forgetfulness or procrastination will not be enough cause for the fees to be waived. You will have to convince the IRS that you did your due diligence but that something outside of your control prevented you from submitting the correct information on time.

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Take Action Right Away

If you have missed the deadline for filing 1099s, the best thing you can do is take action right away. Submit any missed forms or corrected information immediately. You can then work on submitting information to the IRS in an attempt to prove that this was not due to your negligence. The longer you put off rectifying the situation, the more fines you will be penalized with.

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One of the best ways you can prevent the unfortunate mistake of forgetting to file 1099s or filling them out incorrectly is to utilize our simple platform at OnlineFileTaxes.com. We make filing 1099s simple, fast, and affordable. Avoid missing the deadline, sign up for free today.

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5 Important Facts To Know Before Filing Your 1099s

5 Important Facts To Know Before Filing Your 1099s

When it comes to filing 1099s, you probably don’t relish the process. However, filing all your 1099s will be critical for your business. Failing to do so can result in fines and a big headache. If you are in the throes of 1099s preparation, we are here to help. Our easy online platform makes filing 1099s much simpler than ever before.

As you get ready to work on this project, check out the following five important facts that will help you file your 1099s like a pro.

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#1: There Are Numerous Types Of 1099s

When referring to the 1099 form, there are actually a large variety of 1099s that might be in play. Each 1099 form is utilized for a specific situation or payout. For example, a contractor will receive a different 1099 from your business than a person who received dividends from your company. Understanding which form to fill out for each unique situation will go a long way in the successful filing of all your tax forms. Some of the common 1099s you might encounter include the following:

  • 1099-MISC: the most commonly used 1099, this form reports commission paid to a freelancer or contractor who is not your employee.
  • 1099-DIV: this tax form reports dividends and distributions paid to a person.
  • 1099-INT: utilize this form when you pay someone more than $600 in interest.
  • 1099-B: file this form to document proceeds from broker and barter exchange transactions.
  • 1099-C: in the case of a cancellation of debt equally more than $600, this form will be utilized.
  • 1099-R: fill out this form to report distributions of pensions, annuities, retirement plans, and other related distributions
  • 1099-S: this tax form will be used to report process from real estate transactions.

As you can see, there are a variety of 1099s that you might need to fill out during tax season. Be sure you are clear on exactly which 1099s you are required to file and ensure you handle the process in a timely manner.

#2: Deadlines Must Be Met

When it comes to filing 1099s, one of the most important factors is your timing. There are strict deadlines that you need to meet in order to avoid penalties. File all appropriate 1099s by January 31, ensuring you provide documentation to both the IRS and the party in question. If you fail to meet the deadlines outlined by the IRS, you can face severe penalties. The more 1099s you have to file, the costlier procrastination will become. Not only will the IRS penalize you for being late, but you can also cause frustration to those who need to receive their 1099s prior to filing their own taxes.

#3: Don’t Skip Any Forms

It can feel overwhelming when you stare down the pile of tax forms you need to fill out. Due to the variety of 1099s, it can be tempting to just skip ones you are uncertain about. However, not filing the right forms can be a costly mistake. The IRS requires extremely accurate reporting, which means that overdoing it in regards to forms is better than underdoing it. Make sure that if you are in doubt about what 1099s you are required to file you seek the help of an experienced professional. While filing 1099s might not be your favorite activity, it is critical that you don’t skip a single form.

#4: Multiple Parties Receive The 1099

Don’t forget, in order for the 1099 process to be complete, the party in question needs a copy and you need to officially file the 1099s with the IRS. Skipping either side of this task could result in penalties, not to mention could be extremely frustrating for contractors and freelancers who depend upon receiving 1099s in order to file their own taxes. Be sure that you handle both filing with the IRS and mailing out copies to the respective parties at the same time to guard against forgetfulness or procrastination.

#5: Filing Online Provides Faster Results

One important fact to keep in mind during the upcoming tax season is that filing 1099s online will save you a massive amount of time. Rather than purchasing 1099s, printing them off, filling them out, and manually filing them with the IRS, you can utilize online e-filing to make the process simple.

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For example, here at OnlineFileTaxes.com you can fill out anywhere from one single 1099 to hundreds through our platform. We make it simple to not only fill out all your 1099s in one place, but we also make filing a breeze. As an IRS approved e-file provider, we can automatically file your 1099s with the IRS as well as send out copies to the appropriate parties. This prevents you from remembering multiple steps and saves you copious amounts of time and money. File all your 1099s today in one easy place at OnlineFileTaxes.com

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Knowing When To Submit A 1099 For Your Accountant

Knowing When To Submit A 1099 For Your Accountant

When it comes to filing the right tax forms for your small business, things can quickly become tricky. It is not always easy to know which forms you should file and different classifications of work or services provided will mean different taxations. In the case of contractors and freelancers, filing a 1099 is a must. However, you might need to also file a 1099 for the services provided to you by your accountant.

Here at OnlineFileTaxes.com we make filing 1099s for accountants simple and straightforward. Our goal is to alleviate the hassle of filing 1099 forms by allowing you to file the forms online. This makes the entire process simple, fast, and affordable. If you are trying to determine whether or not you should submit a 1099 for your accountant, read on to learn more about when it is a must.

A Corporation Or A Partnership Or Self-Employed

The first thing you need to determine when trying to decide whether or not to file a 1099 due to services provided by your accountant is how they are classified. If the accountant is part of a corporation, you do not need to file a 1099. However, if the accountant is not part of a corporation, you might need to file a 1099. This includes accountants that are classified as a partnership or are independent contractors.

Not sure which is the case? Make sure you speak to your accountant to ascertain the answer long before tax season strikes. 1099s need to be filed prior to January 31st, so understanding this piece of information will be vital to cover all your bases. Reach out and ask how they are classified and then move forward to the next stipulation.

How Much Did You Spend?

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1099s are only necessary when the dollar amount you spent was over $600. If, for example, you only utilized an accountant’s help for the price of $100, you do not need to worry about submitting a 1099. It is also important to note that you only have to calculate the costs for services, not products.

If you did spend more than $600 on services and your CPA is not incorporated, then you should file a 1099. Because 1099s are dependent upon a myriad of factors, including the amount of money rendered for services, it is vital that your business keeps pristine records of all transactions. This is why storing receipts and keeping data stored in easily accessible ways will go a long way in helping your tax season go smoothly.

Where To File Your 1099s For Accountants

If you have determined that you do need to file a 1099 for your accountant, your next step will be figuring out how to do so. The good news is that you can file this 1099 alongside any other 1099s you have to process. This might include 1099s for contractors, freelancers, or other vendors. By doing this all at once, you can save yourself a large amount of time and hassle.

The best way to go about filing these forms is to utilize an online service, such as the one found at OnlineFileTaxes.com. This will make the entire process much simpler than doing it the old-fashioned way via mail. You can complete the task in easy steps. Simply sign up, fill out as many 1099s as you need to, and submit them to the IRS. E-filing is fast, simple, and doesn’t require you to remember multiple to-dos. Not only will this allow for quick filing with the IRS, but it will also ensure that the proper 1099s are sent out to your accountant and other respective contractors.

The Benefits Of OnlineFileTaxes.com

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If you are ready to start working on the pile of 1099s you know you need to file, we are here to help. We are proud to provide an affordable and easy option for small business owners to utilize to ensure they file everything they need to during the tax season. A few of the benefits you will experience when you utilize our services include the following:

  • Affordable Pricing: Are you overwhelmed by the costs of high-end software or other programs? Then you will benefit from the affordable pricing of our services. We understand that for your business, every penny counts. We want to ensure you don’t waste any money when filing 1099s.
  • Easy System: Not only can software programs become costly fast, many of them are complex and confusing. The same can be said of trying to tackle filing 1099s on your own. With our platform, filing has never been easier. We created a system that anyone can use, without spending hours trying to simply figure the program out.
  • Online Access: Your life is busy and we get that. Our platform is accessible online so that you can tackle filing your 1099s no matter where business takes you. Don’t be trapped at the office any longer than need be. Enjoy the simplicity of an online filing system.
  • Freed Up Time: Let’s face it, you have plenty you would rather be doing than pouring hours of time into lengthy forms. We understand that, which is why we have developed a much faster and more efficient method for filing 1099s. This will allow you to use your free time in a more productive way for your business or to spend time doing the things you love.
  • Accuracy: Do you worry about filling out forms by hand? It is easy to make mistakes or forget to file things when you are surrounded by mounds of paperwork. By utilizing our system, you can improve accuracy and prevent mistakes.

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Ready to get started? We invite you to sign up today and to reach out to our team with any further questions you might have. Be sure you beat the January 31st deadline by getting everything you need in order for filing your 1099s. Whether you are filing a 1099 for your accountant or you are preparing hundreds of 1099s for various contractors, our system will make the process simple, affordable, and fast.

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The Difference Between An Employee And A Contractor

The Difference Between An Employee And A Contractor

If you are running a business and you are looking to prepare important tax documents, you will run across and important question — does the person in question qualify as an employee of your company or a contractor? The difference will be crucial when it comes to how you pay your end of the taxes and what documents you need to file with the IRS. When it comes to hiring a contractor, you will need to file 1099s for contractors. If, however, someone is your employee, the process is entirely different.

Here at the Online File Taxes, we make it simple for you to file 1099s for contractors, freelancers, and others. Through our online platform, you can quickly fill out the necessary information, check out, and automatically e-file your 1099s with the IRS. Not only that, but your documents will also be saved in a convenient location where you can access the documents at any time. We also handle sending the 1099s to the appropriate contractors to simplify the process even further for you. Before you decide whether or not you should file a 1099 for a contractor, be sure they do in fact fall under this classification. Read on to learn more about the major differences between contractors and employees.

Considering The Control Over The Worker

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The first thing to think about when trying to determine if someone is your employee or simply a contractor is how much you control about their work. A contractor is someone who operates independently of your company and is simply hired for a specific task or time period. As such, you do not control the way they do their job. This includes that you cannot control what the worker does and how they perform their tasks.

This is in contrast to an employee who works for you directly and answers to you. With an employee, you can clearly dictate instructions on when, where, and how to work. Other examples that include what is called behavioral control include the following:

  • Dictating what type of tools they use
  • Giving instructions on specific supplies and services to purchase
  • Detailed guidelines on what work must be performed

Depending on the degree of control over these behavioral aspects, a worker will be classified as either a contractor or employee. The more control you retain over someone, the less likely it is that you can classify them as a contractor. Simply put, a contractor has much more independence and operates as if they were their own company outside of your business.

Factoring In The Financials And Benefits

Another determining factor between an employee and a contractor is how the financials are handled. There are numerous facets to what falls under this broad umbrella, but the basic idea is whether or not your business handles most of the costs of equipment and other up front investments or the worker does. If the worker is responsible for using their own tools or puts forth a large investment in equipment without reimbursement from your business, they are most likely a contractor. However, when you have an employee, you will be the one responsible for these costs.

Along the same vein, a contractor is independent which means they can seek out other work as well. While an employee might be contracted to only work for you, a contractor is allowed — in most cases — to continue to advertise, seek out business opportunities, or maintain a visible business location.

Also falling under the umbrella of financials is the way you are paying someone. An employee has a guaranteed wage, whether salary or hourly. They are paid at set intervals and have a constant flow of paychecks. An independent contractor, however, might be paid a flat fee for one project.

Defining The Type Of Relationship

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Finally, a large factor in determining whether the worker in question is a contractor or an employee will be found in the type of relationship between them and the business. Do you have a contract that includes employee-type benefits? For example, vacation pay or insurance coverage would be an indicator of an employee status. Conversely, an independent contractor will not receive these types of benefits and there might not be a long-term guarantee of work.

All of the above factors play a role in determining whether or not someone is a contractor or an employee of your company. In some cases, the lines may be fuzzy between the two and it can be hard to determine which is true. In these situations, it is wise to fill out a form with the IRS that helps determine the worker status.

The Importance Of Filing A 1099 For Contractors

If you do determine that someone you worked with over the past year was a contractor, you will need to file a 1099 with the IRS. Because taxation is handled differently depending on whether or not someone is your employee or contractor, it is critical that you figure this out early on. A contractor will be responsible for all their own taxes, whereas with an employee, there will be taxes you are required to pay. By filing the proper forms, you can ensure your company is not amiss during tax season.

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The good news is that through Online File Taxes, you can quickly and simply submit any 1099s for contractors that you need. Whether you have one form to fill out or hundreds, our platform is equipped to make the process as simple as possible. You can easily submit all the information needed, without printing off cumbersome amounts of paperwork. Once you check out, your forms will be e-filed with the IRS. We are an IRS approved provider, so you can rest assured that your 1099s will be filed accurately and quickly. Not only will we file your 1099s with the IRS right away, but we will also mail out the 1099s to the respective contractors. This takes away all the hassle for you and ensures that you get everything completed by the January deadline. The best part of all is that our services are affordable. Try our service out today and streamline the process of filing 1099s for contractors.

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Tips For Small Business Owners For The Upcoming Tax Season

Tips For Small Business Owners For The Upcoming Tax Season

If you are a small business owner, then odds are good you wear a million hats. Operating a small business requires hard work and a lot of focus. From ensuring day-to-day operations are running smoothly to handling big picture items, such as the future goals of your business, it is no easy feat to effectively manage your small business. One big task that many small business owners loathe but is a necessary evil is correctly filing taxes. For small business owners, tax season can be a flurry of activity and can begin to feel downright chaotic.

Before tax season is fully upon us, take the time to consider the following tips that will help you prepare. Here at OnlineFileTaxes.com, we make it easy to file 1099s through our online platform. Read on to find out how this, as well as our other tips and tricks, can make your life easier in the 2019 tax season.

Get Organized Early

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When it comes to filing taxes, the more organized you are, the better. Make sure that from the start you are keeping everything you will need organized. Do you find yourself simply throwing receipts and paperwork into a pile on your desk? Do you have a filing cabinet that is overflowing with papers that are haphazardly organized? Take the time to straighten out all your paperwork and set in place a system to keep things in order.

Due to the amount of paperwork you will undoubtedly have as a small business, it is wise to turn as much of your paperwork into digital documents as possible. Storing your information in a digital format will make it easier to stay organized and prevents you from drowning in a sea of papers. Make sure that you keep everything in an order that is simple for you to weed through later. For example, all your receipts should be kept in one location, sorted by date. If you have employed contractors, freelancers, or other non-employee workers, store all their information in one easy-to-access location. Whether you keep hard copies of everything on hand or you store things online, make sure your system is simple and easily navigable. By keeping your paperwork organized throughout the year, you can save yourself from a massive headache when tax season is in full swing.

Be Sure You Understand Your Responsibilities

Taxes for small business owners can be a confusing thing. There are a myriad of complexities surrounding what you need to file and what you will owe. If you are not an expert in taxes, take the time to learn more so you are confident that you know your responsibilities come tax season. Reach out to a local CPA to get advice or spend a day researching on your own. Create a list of questions you have or areas of confusion. Dig until you find the answers you need.

In many cities, local libraries will offer free tax services where you can meet one-on-one with a tax expert. Bring in a list of questions and find out everything you need to know long before tax season arrives. This will help you better prepare ahead of time and will prevent you from feeling at a complete loss when your taxes are due. By ensuring you understand your responsibilities, you can save yourself time and money in the long run.

Tackle Projects In Steps

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Filing taxes as a small business owner can feel like an overwhelming task. If you are staring at mounds of paperwork in your office and you realize you have a ton of research to do before you are equipped to file your taxes properly, take a deep breath and bite off small pieces of the project at a time. Instead of spending a whole day drowning in receipts, tax forms, and paperwork, block out small chunks of time each day for a week to handle one component of the project.

For example, one day you can spend a few hours organizing all your receipts. Another day you might spend doing research on local laws for filing taxes as a small business owner. By tackling the project in steps, the task will be less overwhelming and you will be less frazzled leading to fewer mistakes.

Streamline The Filing Process

The good news is that with the advent of technology, a lot of tasks that were once manual and time-consuming can now be streamlined. If you can improve your efficiency by utilizing online tools, by all means, do so! For example, 1099s for small business owners can all be filed online through our service at OnlineFileTaxes.com. Instead of downloading and printing out dozens of 1099s and then manually filing them with the IRS, you can quickly do it all through our online portal. Once you fill out the information online, the 1099s will automatically be filed with the IRS electronically for you. You will receive a copy of the form for your own records, which will be easy to access online at any time. The 1099 will also be automatically mailed out to the appropriate recipient, saving you yet another step.

By utilizing efficient technologies, such as OnlineFileTaxes.com, you can save yourself an immense amount of time and hassle. Instead of being buried in paperwork, spending hours upon hours filling out lengthy forms, you can quickly accomplish the task, freeing your time for other important pressing matters. As a small business owner, your time is invaluable, so be sure to implement as many streamlined methods for tax filing as you possibly can.

Assess For Next Year

Finally, take the time after you are finished with tax season to assess what could be done better next year. Did you struggle with organization, making it difficult to find the paperwork you needed when it came time to file your taxes? Did you make the mistake of manually filing all your 1099s, creating a headache? Take note of any areas you could improve in and set up a better system for the following year.

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Interested in making the process of filing 1099s simple? Sign up to utilize OnlineFileTaxes.com today and save yourself time and money. With our easy-to-use platform, you can file all your 1099s in no time at all from the comfort of your computer.

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Everything You Need to Know About 1099 Preparation

Are you a freelancer or independent contractor? Depending on how much work you’ve done, you could be receiving a 1099 form down the road. But what exactly is a 1099 and why is it important?

Let’s take a closer look at these forms.

The Basics of a 1099 Form

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Just because you’re a freelancer or independent contractor doesn’t mean you’re exempt from tax implications. Basically, 1099 forms report to the Internal Revenue Service how much a company has paid you in the last tax year as a “non-employee.” Think of this documentation as an alternative to W-2 forms, which organizations use to declare income for employees.

We are often asked what specifically defines an independent contractor. Here’s the thing: you become eligible for a 1099 when you work and perform services for a company as opposed to being a direct employee. For the most part, an independent contractor can dictate their schedule, choosing when and how often they want to work.

Did you recently sign up to be a driver for a ride-sharing company? Are you doing freelance design work for a friend’s business? In both of these scenarios, you would qualify as an independent contractor and, consequently, would be eligible for a 1099.

Here’s where things get a bit dicey. If a company has paid a freelancer less than $600 over the course of a year, there’s no need to send the independent contractor a 1099. However, the freelancer must still account for the income when doing their taxes.

How to Prepare Your 1099s

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Now that you understand the basics of a 1099 form, let’s dive into 1099 preparation from an employer’s perspective. Here are some tips for making sure this documentation is on par with what the IRS wants:

Verify your information

image1QuickBooks explains the importance of having correct information on your contractors. Ideally, you should have already filled out a W-9 for each freelancer, which includes their name, address, and Social Security number. Don’t be afraid to ask your independent contractors if any of their information has changed.

So what happens if a contractor fails to provide a W-9 or left out pieces of information? According to the IRS, you are allowed to withhold 28 percent of their pay. This is what’s known as “backup withholding” in the tax world.

Get your 1099s

image2Now you’re ready to obtain those 1099s and get started. One mistake to avoid here is using a downloaded form or even a sample from the IRS. Instead, you must use forms that are readable by the IRS scanner that process 1099s.

Maybe you’re thinking, “This sounds like more of a hassle than anything else.” Here at OnlineFileTaxes.com, we agree that obtaining 1099 forms can be complicated. We’ll circle back to this idea later in the post.

Fill out the forms

image3This is likely to be the most time-consuming step of the process. Each 1099 form should include your Federal Tax ID number, as well as the contractor’s information. Be sure to also enter the amount of money paid to the contractor, which is entered in Box 7 under “Non-employee compensation.”

The last piece is filling in the contact information forms. As aforementioned, manually filling out 1099s can take up a good chunk of time. That’s why we recommend using an e-file provider such as OnlineFileTaxes.com.

Send out the forms

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After spending precious hours (or days) filling out 1099s, you’re ready to send them out and get back to running your business. The deadline for mailing or handing copies to independent contractors is February 1.

Should you fail to meet this deadline, you could face some hefty IRS penalty fees.

Keep copies for your records

Copy C is meant to be kept for your records. While you may not want additional paperwork in your office, it’s essential to have these records available in case there are questions. The last thing you want is to be contacted by the IRS regarding a contractor’s 1099 and not have your own copy of the form.

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How We Can Assist With 1099 Preparation

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Whether you’re a business owner, CPA, accounting professional, or an independent contractor, chances are you’ve thought about e-filing 1099 forms. Doing so saves time and allows you to focus more on your work. But with so many 1099 preparation services out there, how do you really know which is best for you?

More people are using OnlineFileTaxes.com than ever before and it’s no secret why. With our unique, easy-to-use system, you can e-file 1099 forms in just minutes. Your files are sent to the IRS for fast, efficient, safe, and, of course, simple filing.

Let’s take a closer look at some of the benefits of OnlineFileTaxes.com:

  1. Process any number of forms – Whether you need to process one 1099 or hundreds,onlineFileTaxes.com makes a great resource.icon1

  2. Remove the need to buy and fill out lengthy forms – Who really has the time to do this anymore? Maybe you’re a business owner and a parent. You shouldn’t have to put off valuable family time just to manually complete 1099s. Thanks to our automated filing system, you can focus less on tax documentation and more on enjoying your family.icon2
  3. Eliminate the need to invest in any software – It might seem convenient to grab the latest tax software and call it good. However, these products can certainly be pricey. Not to mention, you have to purchase the newest version every year. With OnlineFileTaxes.com, there is no expensive software to worry about.icon3
  4. Eliminate the administrative and IT costs associated with year-end 1099 processing – You’re a savvy business owner who watches over finances like a hawk. It’s no secret that 1099 processing can cost a pretty penny. There has to be a more affordable option, right? Well, signing up for OnlineFileTaxes.com is absolutely free. Users can print, mail, and e-file 1099s for as low as $1.25 per form. That’s quite the steal if you ask us.icon4

  5. Print, mail, and electronically file with the IRS once you fill out your forms – At OnlineFileTaxes.com, we want your experience to be a stress-free one. That’s why we make it easy to print, mail, and electronically file with the IRS. We even print and mail recipient copies for you to keep for your records. You won’t find a more straightforward e-filing service.icon5

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E-File Various Tax Forms With Us

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When it comes to filing Form 1099 online, there’s no better system than OnlineFileTaxes.com. Keep reading to learn about 1098, 1099, and W-2 forms.

Form 1099-MISC

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We touched on this documentation earlier, but it’s worth explaining a bit more. Form 1099-MISC reports commission paid during the year to an individual (usually labeled a freelancer or independent contractor) who is not an employee. We have found this specific form to be the most common 1099.

Form 1099-DIV

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Wondering if there’s a tax form used to report dividends and distributions paid to a person? Then it’s imperative to e-file Form 1099-DIV. You must file this form if you paid to a person:

  • To whom you have paid dividends and other distributions on stock of at least $10

  • For whom you have withheld and paid any foreign tax on dividends and other distributions on stock

  • For whom you have withheld any federal income tax on dividends under the backup withholding rules

  • To whom you have paid at least $600 as part of a liquidation

Form 1099-INT

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This form reports interest paid during the year to an individual whom you have paid at least $600 in interest. In addition, Form 1099-INT reports specified private activity bond interest and federal income tax withheld, if applicable.

From 1099-B

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This form is used to document proceeds from broker and barter exchange transactions. More specifically, Form 1099-B reports such proceeds for each person for whom the broker has sold any of the following:

  • Stocks

  • Bonds

  • Commodities

  • Regulated futures contracts

  • Foreign currency contracts

  • Forward contracts

  • Debt instruments

Form 1099-C

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Form 1099-C revolves around the cancellation of debt. It must be filed for each debtor for whom a debt owed is at least $600 if the debtor is an individual, corporation, partnership, trust, association, company, or estate. The IRS requires Form 1099-C be filed regardless of whether the debtor is required to report the debt as income.

Form 1099-R

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Form 1099-R reports distributions from pensions, annuities, retirement plans, and insurance contracts for each person to whom you have made a distribution or are treated as having made a distribution of $10 or more from such plans.

Form 1099-S

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Form 1099-S reports the sale or exchange transaction for money, indebtedness, property, or services of any ownership interest in land, permanent structures, buildings, etc. In simpler terms, this form accounts for any proceeds from real estate transactions.

Form 1098

1098

This form is used to report mortgage interest of at least $600 received during the year via trade or business from an individual, including a sole proprietor. Keep in mind that the $600 amount specified in Form 1098 applies separately to each mortgage.

Form 1098-T

1098-t

This form is used for each student enrolled and for whom a reportable transaction is made. If the insured received any sort of refund or reimbursement of qualified tuition, Form 1098-T must still be filed.

Form 1098-MA

1098-ma

Form 1098-MA provides information to the IRS, as well as homeowners, regarding mortgage payments made with funds allocated from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets.

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File Your 1099 Electronically

If you’ve never used a service for filing, now is a great time to start. OnlineFileTaxes.com offers the most cost-effective way to e-file 1099s and other essential forms.

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What You Should Know About 1099s

Tax Day has come and gone once again.

As a taxpayer, we’re willing to bet that you hate putting together documentation for Uncle Sam. Obviously, though, it’s something every taxpayer must do.

We thought it would be beneficial to focus on 1099 preparation in our latest blog post. More specifically, what should the average joe know when they go to file 1099 forms next year?

Let’s take a look:

  1. There are countless varieties of 1099 – The accompanying infographic explains this in greater detail, but it’s also worth touching on in this list. There’s a 1099-DIV for dividends, a 1099-INT for interest, a 1099-R for pensions and retirement payouts, a 1099-S for real estate transactions, and more. Interestingly, the one that’s most common (Form 1099-MISC) seems to be the most challenging for taxpayers. The takeaway here is that not all 1099 forms are the same.

  2. Timing is important – Taxpayers had until January 31, 2018 to file 1099s for the 2017 tax year. For future reference, some businesses send out their 1099s at the same time they mail pay stubs so they don’t have to send a form later. That’s why it’s a good idea to always look out for 1099s. Maybe you’re wondering, “What if I don’t receive a copy of my 1099 form by February or March.” Well, don’t just assume you’re in the clear. Believe it or not, some businesses don’t issue 1099s until well into April or May. This is certainly something to keep in mind if you’re accustomed to filing taxes early.

  3. The Internal Revenue Service receives them also – The majority of businesses send 1099s to the IRS at the same time they mail forms to taxpayers. It’s just easier that way, right? Other payers get the necessary documentation to employees, allow some time to collect copies, and then transmit this information electronically to the IRS. Why is this worth mentioning? Here’s the thing: while you may think you can hide earnings information from big brother, you really can’t.

  4. Report errors as soon as possible – It’s one thing to keep every 1099 in a neatly organized pile. That said, do yourself a favor and open these forms immediately after receiving them. Reporting errors happen every once in a while. The last thing you want is to see $10,000 on an issued 1099-MISC when you know you only made $1,000 from the company that sent the form. Tell the company immediately if this occurs.

  5. Report every 1099 – It goes without saying that you can’t ignore a 1099 form. Keep in mind that the IRS matches every single 1099 form with your tax return. Do you think a particular one should be canceled? Then make it a point to explain why on your return.

File 1099 Online

Handling 1099 documentation can be more of a hassle than anything else. That’s why more taxpayers are choosing OnlineFileTaxes.com.

We are proud to offer the most cost-effective way to efile 1099 forms.

With OnlineFileTaxes.com, you can process hundreds of forms in a way that’s seamless and economical. Our system is ideal for businesses, CPAs, accounting professionals, and individuals alike.

Sign up for free!

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Why You Should Use OnlineFileTaxes.com

We don’t know many people who actually enjoy doing their taxes. But if you’re the owner of a business, an accounting professional, or self-employed, 1099 preparation is a big deal. OnlineFileTaxes.com is proud to be an IRS-approved e-file provider. We take the hassle out of filing your 1099 forms. With our online tax reporting service, you can e-file 1099 forms and other documentation in minutes. Say goodbye to wasting valuable business days manually going through one 1099 after another. With OnlineFileTaxes.com, your files are electronically sent to the Internal Revenue Service quickly and efficiently. For your convenience, we also print and mail recipient copies for you to keep in your records. Keep reading to learn more about our service and how OnlineFileTaxes.com makes sense for your situation.

File 1099 Forms With Ease

Whether you have just one copy of a 1099 form to file or hundreds, we invite you to take advantage of our services. So what makes OnlineFileTaxes.com unique? Well, let’s start with the fact that our do-it-yourself software allows you to effectively manage all of those tax forms. Plus, since we e-file 1099 forms, a 1096 isn’t necessary. As long as you get your completed documentation in by the end of March, then it will be filed on time. Pretty cool, right?

Our Pricing to E-File 1099 Forms

It’s our belief that you shouldn’t have to pay a premium price to have someone handle your 1099 forms. Please note that our default service option includes e-filing, as well as printing mailing recipient copies. Here are a few other options available through OnlineFileTaxes.com:

  • E-file only – Maybe you have already provided us with recipient copies and simply want us to report to the IRS. If that’s the case, then this is the option for you.

  • Print and mail only – Some businesses and individuals prefer that we print and mail recipient copies. For example, let’s say you already submitted your information to the IRS but would like OnlineFileTaxes.com to provide hard copies to recipients. You can count on us to customize a solution to fit your needs.

  • TIN checking – Should you report a wrong TIN number for your recipients, you could face serious penalties. OnlineFileTaxes.com can help you be proactive in this area. It’s important to know that we are an IRS-approved TIN check provider. If you’re interested in this service, we will confirm the number before submitting to the IRS. Please don’t hesitate to reach out to us with questions regarding TIN checking.

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What Others Say About Our 1099 Preparation

OnlineFileTaxes.com will e-file your 1099 forms for as low as $1.25 per form. Frankly, if you’re looking to save time and money on your taxes, choosing OnlineFileTaxes.com is a no-brainer.

Take it from Jennifer Schubert-Akin of Manhattan Accounting Services, LLC in Colorado, who says, “I highly recommend OnlineFileTaxes for your 1099 e-filing needs. There’s no need to buy expensive forms and stuff envelopes. It’s secure, accurate, fast, and affordable…and better than Intuit’s e-file service.

It’s time to take control of your taxes. Start filing today.

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Tips for Filing 1099-R

Form 1099-R is a U.S. Internal Revenue Service form that’s used to report distributions from pensions, annuities, retirement/profit-sharing plans, IRAs, and insurance contractors for each person to whom you have made a designated distribution or are treated as having made a distribution of $10 or more from profit-sharing or retirement plans. This could also include any individual arrangements, annuities, pensions, insurance contractors, survivor income benefit plans, permanent and total disability payments under life insurance contractors, charitable gift annuities, etc. Keep reading for 1099-R filing tips from OnlineFileTaxes.com.

  1. Your taxable amount may not be fully ‘taxable-focus’ on Box 2a - Usually, your plan administrator must reflect the taxable amount of your distribution in Box 2a. Be aware that the following are non-taxable transactions, which would be reported in Box 1, but not Box 2a:

    1. Direct rollovers between qualified plans, 403(b) plans, 457(b) plans, traditional IRAs, and simple IRAs
    2. The principal on a return of excess contribution from an IRA that’s removed by the deadline (the excess amount and earnings are reported in Box 1, but only the earnings are reported in Box 2a)
    3. Any recharacterized IRA contributions or Roth conversions
    4. Distributions of after-tax amounts from qualified plan
  2. You will need to apply the non-taxable treatment on your return if an amount is reported in Box 2a – Let’s look at an example of this. You receive a rollover eligible distribution and you rolled over the amount within two months. The IRS requires that you report such amount on Lines 15a and 15b if the distribution was made from an IRA or Lines 16a and 16b if the distribution was made from a qualified savings plan. Maybe you receive a distribution of $15,000 from your traditional IRA last year, but you rolled over the amount within the allocated 60 days. The issuer of your 1099-R must report the amount as taxable. When you file your return, be sure to do the following:

    1. Enter $15,000 on Line 15a

    2. Enter ‘rollover’ next to Line 15b

    3. Enter ‘0’ on Line 15b

  3. Non-taxable amounts are attributed to after-tax contributions made to your qualified plan – Here’s the thing: If the distributions were made from a qualified plan or 403(b) plan, then there’s a good chance the 1099-R correctly shows the non-taxable amount. Just know that you may have to file Form 8606 with your return in this case. Form 8606 includes a formula that helps you determine the taxable portion of your distribution. Filing this additional form will help the IRS understand how you got to the current figure.

  4. Stay accurate with any recharacterization – Let’s say that you converted an amount that water recharacterized down the road. If a conversion for last year is recharacterized this year, the 1099-R for recharacterization will not be issued until January of next year. Not only that, but the tax reporting for the recharacterization will likely not correspond to the tax reporting for the conversion. Consider the hypothetical in which you converted $200,000 last year and, due to market losses, the account was valued at $150,000 when it was recharacterized. You should expect to receive a 1099-R form and a 5498 showing $150,000 for the recharacterization. Still, you would treat the entire $200,000 as non-taxable because the entire amount was recharacterized for tax purposes. In the event that you characterize less than 100 percent of the conversion, you will need to file IRS Form 8606.

Unless the form shows that you had taxes withheld, it’s not required that a 1099-R be filed with your return. It’s a good idea, however, to keep a copy of your account statement that includes the transaction for which the form was generated. This way, you have what you need should a transaction review come up down the road.

Stress-Free Way to File 1099 Forms

We are proud to make 1099 preparation much more efficient and cost-effective than it’s been in the past. OnlineFileTaxes.com is an IRS-approved e-file provider. Whether you need just one copy of 1099 forms or hundreds, we can help. Our 1099 online forms are available for as low as $1.25 perform.

 

Here’s how it works: First, use our online tax reporting service to e-file your 1099 forms in minutes. No longer are you forced to spend hours on end filling out forms manually. From there, your online files are electronically sent to the IRS for fast, efficient, and simple filing. We even print and mail recipient copies for you to keep for your records.

With OnlineFileTaxes.com, you don’t have to invest in expensive software that you only use during tax season. Plus, say goodbye to outrageous administrative and IT costs related to year-end 1099 processing.

Have you been searching for a less stressful way to e-file 1099 forms? Look no further than OnlineFileTaxes.com.

 

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