How Form 8655 Deduction 2024

Hi, today we're here to talk about filing a 1099 form. Most of the time, when you use a 1099, you'll be using the 1099 miscellaneous. If you have someone that works for you as an independent contractor, you'll use a 1099. Now, the IRS rules are very stringent in regard to whether or not you can be considered an independent contractor, so you need to watch the guidelines very closely because they will disallow some independent contractor status if you're not careful. Once you determine that you have a true independent contractor situation and you've paid this individual throughout the year, anyone that you paid more than $600 to throughout the year for services will require a 1099. Depending on whether or not you're a corporation, LLC, or sole proprietor, you'll either need to use your employer identification number (EIN number) or your social security number. That will be entered onto the W-9 form, along with the worker's social security number and the amount of compensation that you paid to this individual. The compensation will go into the titled "Non-employee Compensation," which is number seven on the 1099. If by chance you've withheld any federal or state taxes on this individual, you'll also need to enter that on the 1099. Typically, you won't have withheld any, so it's not an issue, but just be aware of it. The next step would be to fill in the name and address of your business, as well as the name and address of the contract employee. You need to give or mail a copy of the 1099 to the independent contractor no later than January 31st of the year following the year the work was done. You'll need to mail Copy B and Copy 2 to the contractor. Copy 1 will be sent to...