How to fill out an IRS 1099-MISC Tax Form

Hiring a contractor can be a stressful job, but unfortunately your job is not done once you write that final check. At the end of the year you may also need to fill out a 1099-MISC form and send it out to the contractor and the IRS to document how much you paid them. This video gives a quick lesson how to fill one of these forms out.
Information herein is not intended to be tax advice. For specific tax advice, consult a tax professional.

---

Closed Caption:

hello this video and today I'm going to
be talking about how to fill out these
1099 miscellaneous forms or 1099 mi SE
forms are a lot of times when you hired
a contractor to do some work you know
you sign a contract you you ask them to
do a certain amount of work they finish
it up you pay them off and off you go
well at the end of the year you should
really be filling out these 1099 forms
to tell the IRS how much you paid them
and these forms only record any taxes
you know you're not paying taxes you're
hoping that they'll pay their own taxes
you check their credentials their legal
operation they pay their own taxes here
you're just reporting what you paid them
and that's kind of what I'm focused on
today you could fill out a whole bunch
of tax information here as well but just
for like hiring contractors
you're just reporting what you paid them
has nothing to do with taxes they deal
with the taxes
so the first thing before you can even
fill this out is to have your contractor
who ever your piano teacher etc
fill out the form w-4 form and this
basically they only have to worry about
tax deductions or what have you
they just what you're after is your name
address and their social security number
or their tax ID number and so this is
what you want to ask them to fill out
before they do any work for you
and just to kinda tell you what what
you're up against
in general if you pay pay somebody more
than let's say three or six hundred
dollars
you should really have to fill this out
legally just like for contractors if you
fill out the 1099 form you have to fill
this out if you pay anybody six hundred
dollars or more that's not a gift
so that's kind of where the starting
point is so again
cavan fill out the tent the w-4 form
four days fit start the work after they
finish the work record how much you paid
them and then at the end of the year you
have to fill out one of these and and
let's go over how to build one of these
things out and its really simple
basically you go to the IRS office and
you ask them for 1099 miscellaneous form
and they give you one of these will ask
you how many you want if you just want
one two or three of these things but if
you ask for one
they'll give you one with actually two
forms on it comes to forms per page
so don't get confused you only really
have to fill up one per person i've had
i've known people who've actually
thought they had to fill up both of
these for one person and that totally
screws up everybody screws up the IRS
screws up screws up the taxpayer if you
paid one person you fill out one top if
you fill out if you pay to people you
fill out one for one
the bottom for the other the top is not
perforated this is send the IRS the
other copies
there's copy one is perforated you can
kind of cut across and so you'd be
sending one to one person one to the
other first
so this hour just the top is just your
name your address and your telephone
number you basically who you are and
then you want the federal tax ID number
this could be as simple as your social
security number or your tax ID number
now the second column here is the
recipients ID number their security
number or tax ID number which you got
from the w-4 form you have the
recipient's name and then they're
mailing address their address and
they're the city & state live at
and then the rest is pretty simple
that's the just most of this stuff you
just leave empty after you get through
to the recipients address
really all you have to do is fill out
box number 7 now if you didn't pay any
taxes
you just pay them straight a paycheck
for the amount that was do you just fill
out number seven is called non employee
compensation so they're essentially a
not not an employee
they were a contractor and it's just
compensation what you paid them
you didn't pay me you know you didn't
withhold tax etc is just a straight
compensation so you put in that number
so if you paid your contractor $10,000
that's the number you pay here and
essentially that's it
so just your name
security number their security number of
their name address etc and this box
number 7
how much you paid them and then you do
that for the other person you paid or if
if there's no other people just send out
one and leave this bottom one blank
now now you have to send this not only
to the taxpayer the the contractor you
you use but also the federal government
and again this top sheet here and it
says here to send this is the for
internal revenue service center
so when you send this away you also have
to fill out this 1096 form just
basically is the cover sheet for all
these 1099 forms and so to fill out one
of these you just ask the IRS for one of
these again and you're just putting
again your information your mailing
address your zip code person to contact
if it's if it's the same person as you
just put down your number
your phone number email address you have
a fact cetera
you're in your employer identification
number of the park
if that's the most cases you would leave
that blank and you put your social
security number here instead
total number of forms return this is box
3
if you just feel that one of these just
put out one if to you put number two is
just a number of forms you are returning
or filled out forms
here's the box for is the federal income
tax withheld
now again we're just paying a contractor
we're not withholding taxes throwing our
case this will be 0 or 1
you just wouldn't fill this in now the
total amount reported in the form 10 96
so this is your adding up all the box
sevens of all the forms you filled out
on your 1099 you're adding up all you
paid for everybody and putting that
amount in
so between the number two forms returned
and the total paid the IRS will be able
to figure out what is what and then box
6 is is just asking you to fill out
which type of form is being accompanied
by the 10 96 and in this case is the
1099 miscellaneous form and so that
would be right here and you put a nice
big big X then you just sign and date
title if you want to put a title or
something i usually keep that blank
so just sign and date and so you take
this and you will return it to the IRS
here is the mailing addresses for the
IRS and if you're in Alabama Arizona etc
this list of states
you will send in one place if not if all
the other following address all the
other things you'd send to this address
here is say Austin Texas address so you
take this
and then you take the front page of your
1099 put in an envelope send it away to
that address and that will take care of
the IRS now you have to send it also to
the recipients
so your contractor now for your
contractor all you have to do is
oh let me back up this
so that's the first page copy a copy of
our copy one goes the state where your
residing a lot of states don't want to
even see this copy so you have to call
your state tax office and say hey do you
want to see the 1099
if they say yes there might be another
form you have to fill out really reform
just like the 10 96 just that
accompanies these but some states
you will have to send copy one to the
state and these are all carbon copies so
you don't have to refill it out and then
some other states
don't you want to see this and you'll
never even send it to anything so form b
is for the recipient
so the game is carbon copy and so you
would rip this out again it's perforated
here you'd send this off to the
recipient and that's basically what they
used to fill out their taxes and that
would be identical copy carbon copy that
the tax office would have so this is
what they need to fill out their taxes
and copy to is again if the recipient
if you sent sent one of these things out
to the state
there's the taxpayer will also have to
send one of these out so you would be
sending both coffee be and copy to to
the attack of to the contractor so they
can use that the last one I just usually
keep four my own copy and that's about
it and and so that's
of just simple kind of a tutorial how to
fill out the 1099 zit can be a lot more
complicated especially if you have
withheld taxes but i hope this helps you
out
and don't forget these - 10 nine nines
or do I think at the end of january and
i think a 10 96 is our do sometimes very
probably by the end federal recall
so check those dates so good luck
see you next time