What is a 1099? What are its types, details, and how do you pay contractors correctly?

[jasminsain]

I often hear about Form 1099 when it comes to hiring freelancers or independent contractors, but I’m still not clear on all the details. From what I understand, it’s a tax form used to report payments made to non-employees — but there seem to be several types like 1099-NEC, 1099-MISC, etc.

 

[Rick_Grimes]

A 1099 is basically a tax form for reporting money you paid to freelancers or contractors. I usually collect a W-9 from them first, and if I pay over $600 in a year, I send them a 1099-NEC by Jan 31 and file it with the IRS. It’s just how you report non-employee payments correctly.

 

[robertwilliam]

A Form 1099 is one of the IRS's informational tax forms that are issued in a series and utilized for reporting the different types of incomes that come from non-employer sources. These forms are not only submitted to the IRS by the businesses and other entities but also sent to the respective recipients as an intimation about reportable transactions such as independent contractor payments, interest income, or dividends.

 

[riya]

A Form 1099 is one of the IRS's informative tax forms, which are issued in series and used to record various types of income from non-employer sources. These forms are not only submitted to the IRS by corporations and other entities, but they are also provided to the beneficiaries as notices of reportable transactions such as independent contractor payments, interest income, or dividends.

 

[jainnorton]

An IRS form that reports non-wage income is called a 1099.

1099-NEC (Nonemployee Compensation) is the most common type. Specifics: Give a contractor more than $600. Obtain a W-9 from the contractor and submit a 1099-NEC to the IRS and the contractor by January 31st in order to make the proper payment.

 

[nikhilrajoria]

Non-employee income is reported using a 1099 form.

Common types:

1. 1099-NEC – Contractor income
2. 1099-MISC – Rent, royalties
3. 1099-INT/DIV – Interest/dividends

Contractors whose earnings are under 600 per year receive file 1099-NEC.

 

[peterkavinsky]

A 1099 is a tax form for reporting income paid to non-employees, like freelancers. The main one for businesses is 1099-NEC, used when you pay a contractor $600 or more in a year. To pay contractors correctly, collect a W-9, track payments, and issue the 1099-NEC to both the contractor and the IRS by January 31.