A person who has worked or is working for the US remotely will of course be required to fill out a 1099 Misc. Here are some aspects of the activity are reflected in this and present a check list.

Who requires to receive a 1099

First of all, these include the activities of persons who:

  • are self-employed or
  • independent contractors or
  • winners of contests or quizzes and so on.

The minimum amount from which the obligation to prepare the 1099 Misc arises starts at $ 600 per year. That is, if you got less then don’t worry about anything.

Who are the senders of this document

These are, of course, companies, firms or corporations that work with freelancers, self-employed or independent contractors. When they send it to their partners, they must indicate the payer numbers, both their own and the counter party.

Of course, you must also specify the full address of the company and the contractor. They must be clarified before sending the document to the recipient. If deductions were made from the remuneration in favor of IRS, they must be specified in the appropriate field. Please note that 1099 Misc must be completed only if the resident does not complete W-9.

How not to pay taxes twice

Sometimes it happens that some local or state 6have already been withheld from the payer’s income. In this case, the payer shall indicate the taxes already paid in the relevant places of 1099 Misc. You should know that the payer is individually responsible for the payment of taxes in the United States. If at the end of the reporting year you have outstanding work for which you have not yet received income, then simply do not specify them in this document. You will include these files in your income for the next reporting year.

What form to send to the tax service

1099 Misc W9
If you are an independent contractor or freelancer If you are an employee
If your income is at least $ 600 per year If you have a fixed salary