Preparing Forms 1099-MISC can be difficult, but we are here to help simplify things!
Before you prepare your Forms 1099-MISC, you will need to gather the tax information for the business or payer and recipient or payee, as well as the amounts paid to the recipient.
A. Business Information
You will need to include the following information on each 1099-MISC form you prepare.
- Federal Employer ID Number
- Business Name
- Business Address
B. Recipient’s Information
Before completing a 1099-MISC form for any non-employee, have them fill out a W-9 form. A W-9 form, like W-4s for employees, will provide you with the relevant information for the recipient such as their name, address, and tax identification number.
C. Payment Amounts
The IRS instructs that a 1099-MISC form must be completed each person who, in the previous tax year, has been paid for certain amounts. It is recommended to view the IRS instructions for the amount types and their corresponding box number, as these are susceptible to change year to year.
There are some notable exceptions to payments that are not required to be reported on a Form 1099-MISC. However, there are or may be some exceptions to the exceptions. It is always best to consult your tax advisor to determine if you should send out a Form W-9 to request information to a payee.
See the instructions by the IRS for more details.
Need more information?
For more information on filing Forms 1099-MISC, please see our other blog posts:
- Who should receive a Form 1099-MISC?
- Check for accuracy.
- E-file and distribute form(s).
- Check the deadlines.
- Verify state filing requirements.
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