1099-MISC/W-2 Reporting Info

  • Three Tips for Avoiding Mistakes on 1099-Misc Forms

    29 October 2015
    Contractors 2

    1099-Misc forms are used to report payments that are miscellaneous to the IRS. Generally, these are filled out for independent contractors who are not considered employees of any specific company. If you are an independent contractor who has to fill out a 1099-Misc tax return document and give it to the IRS, you might want to continue reading to learn how to avoid making mistakes on your form.

    1. Double Check Your Work

    This is an obvious method to prevent making mistakes on 1099-misc forms, but checking your work over a few times is so important. You might just end up catching a mistake or two on a few lines that will mess with your tax returns. Check everything over carefully because you only get one tax return per year and you want to make sure you are getting as much money back from the IRS as you possible can.

    1. Get a Professional to Help You

    If you have a friend or you happen to know someone who knows how to do taxes really well, then ask them to help you. Even if you just need an extra pair of eyes to help you check over your work, it doesn’t hurt to ask. If you need a lot of help, then ask them if they know how to fill out 1099-misc form.

    1. Follow the Directions

    There are directions stated every step of the way for any tax form that you fill out. It should tell you what lines to fill out and what lines you can skip. If you still aren’t sure about what you should do, then either search online to find out what the form is talking about or call the IRS and see if they can help you with what you need to fill out.

    1. Use White Out

    While it is not considered to be professional, white out works in a pinch. If you accidentally filled out a line you weren’t supposed to, white out what you inputted into the form. It saves you the time of having to fill out the form again and it is still a valid tax return form. However, whatever you do, do not scratch anything out on the form in pen or pencil. This looks really bad and if you do actually make a mistake on the form, the IRS might be less willing to work with you to fix the problem.

    If you follow the directions, 1099-misc forms aren’t that hard to fill out. Just make sure that you have documentation of all of your income sources and that you fill out the form correctly. If you happen to make mistakes, then you can either fill out the form again or use white out to save time. If you are really having trouble with the form, then try calling the IRS or consult a friend or tax return specialist because even if you just want them to look it over really quickly, they will know exactly what to look for and how to help you.

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  • Three Things You Need to Know about Hiring Independent Contractors

    27 October 2015

    Hiring independent contractors can be a liberating experience. While they set their own price, their prices are generally cheaper than many name brand companies. If you want to hire an independent contractor to do freelance work for you and/or your company, then there are three things that you should know before doing so.

    1. Liability Problems

    If you hire an independent contractor to come to your worksite and they get hurt, they are allowed to sue you for negligence. This is a real problem if your workplace really is not safe. If the contractor is working from home, then they can’t really sue you because they were doing the work in the comfort of their own home. It falls on them to keep their home safe when they are working.

    1. Copyright Issues

    The contractor has creative license and therefore has the right to their property. If in the contract they state that their property is theirs and cannot be used for anything other than what you hired them to do it for, then you cannot use the copyrighted material anywhere else. The work belongs to the author and they can easily sue you if you break contract and use it elsewhere without their permission.

    1. Tax Forms

    Hiring an independent contractor requires you to file a 1099-misc form at the end of the year which documents how much you hired your contractor for. You then send this to the contractor so that they can do their taxes. If you do not fill out the 1099-misc form, then you can get in trouble by the IRS for tax evasion, even if it was accidental. Your contractor can also get you in trouble with the IRS for not sending them the form they need to complete their taxes with.

    You will want to get proof that the contractor you plan to hire has documentation that they are a self-employed worker of the state. If you do not, then the IRS might not allow you to claim anything from the 1099-misc form with that contractor’s name on it. Make sure that you are hiring a documented freelance worker before you hire them so that you can claim your taxes at the end of the year. Otherwise, if the IRS audits your taxes, you won’t have a leg to stand on against them.

    Having an independent contractor to do work for you can seem pricey at first, but the fact of the matter is that you don’t have to train them or provide them with worker’s compensation or anything else of that nature. You are actually potentially saving a lot of money by hiring a freelance worker. Fill out the required tax forms and send them to the IRS so that you can claim your tax return for the 1099-misc form. Make everything in your contract with the independent contractor clear and make sure that they are being clear with you. Otherwise, a lawsuit could happen due to a miscommunication between you and the contractor.

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  • How to Make 1099-misc Filing Easy

    22 October 2015

    When you work as a freelance writer or an independent contractor, the 1099-misc tax form is your best friend. In order to file your taxes at the end of the year, you will need to fill out this form for every company that you earned a substantial amount of income from throughout the year. The companies are required to send you this form by January 31st of the following tax filing year. Even if they do not send it, you are still required to report your income to the IRS.

    Report All Income

    If you work a substantial amount of the year as a freelancer, then the IRS will classify you as self-employed. When reporting your income, make sure you fill out any sections required for self-employed filers. If you do freelance work on the side and you have another job that brings you the bulk of your income, then report your independent contracting income as other income. There is a bit of a difference in tax deductions when it comes to just how much you rely on your freelance income.

    Advantages of This Form

    If you identify your employment status as self-employed, then you are liable to pay Medicare and Social Security taxes. However, there are advantages to filing the 1099-misc form. For example, you have more freedom with your tax deductions. If you are working on a laptop, then it is much easier to get a deduction on your computer than it is for other workers who have to have itemized receipts for their deductions.

    Use TurboTax

    TurboTax is a tax filing website that is pretty easy to use. It imports information from the IRS onto a form so that you can just fill out a few numbers here and there and complete your taxes. It walks you through everything step by step so that you don’t get lost. If you want to make doing your taxes as easy as possible, then utilize the resources that TurboTax has to offer you.

    If you do not want to use TurboTax, then you can use the 1040-ES form to do your tax calculations. Sometimes technology is not reliable, so make sure to double check your work on both TurboTax and the written form. You do not want to have to go through a tax audit if you accidentally file the wrong numbers.

    Filing a 1099-misc form is meant to be relatively easy so long as all of the companies you have earned a substantial amount of income from send you their form copies at the end of the year. If you do not get a form from the companies, it is still your responsibility to keep track of your income and jot it down on the form. If you made income from a company, then put that income down, regardless of whether or not they sent you the exact amount of money that you earned. You are allowed to estimate and indicate that on the tax form.

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  • Are My Employees’ Identities Safe When I File 1099-misc Forms Online?

    20 October 2015

    Filing taxes online is a relatively new commodity in the working world. People who started filing their taxes long before internet taxpaying rolled around probably have a harder time using online functions than those who are younger workers. Whatever the case might be, if you are filing your 1099-misc forms online, there is a chance that your identity could be stolen. Follow this guide to minimize your chances of identity theft.

    Don’t Leave Save Your Password

    As tempting as it may be to click the “remember me” function on your tax form login page, don’t. There are certain places where there is almost no risk of having your password stolen because of the nature of the website. Taxpayer websites are one of the highest trafficked places by hackers and identity thieves. If you happen to have a key logger Trojan or some type of virus on your computer that you don’t know about, it will be far too easy for someone to steal your password and identity.

    Check for Viruses

    Although some viruses like to stay hidden in your computer, most anti-virus software will be able to detect the viruses on your computer. Some are designed in such a way as to bypass the security functions of your software, but they are somewhat rare. If you have a virus on your computer, then your identity and all of your passwords can be easily compromised. Don’t let that happen to you. Do a maintenance check on your computer regularly.

    Don’t Use a Public Computer 

    It is best to use a home computer or laptop when filing your taxes. This is because if you do your taxes on a public computer, you have no idea who uses it. There could be tons of hackers that use the same public computer you just used to complete your 1099-misc forms on. Do yourself a favor and just complete your taxes at a trusted internet source. Don’t take any chances.

    If you do have to use a public computer, then change your password as soon as you can. It is better to use your smartphone if you have one than to use a public computer, but if you really need to use the public computer, then definitely change your password to a difficult one afterwards. If possible, change the password on a different computer and send yourself multiple password change confirmation emails.

    It may seem silly to take all of these precautionary measures against identity theft, but the fact of the matter is that identities are stolen left and right every day. You don’t want to become someone who has to worry about every little thing they do because someone stole your identity. There should only be one you out there.

    If someone steals your identity, call an identity theft recovery agency as soon as possible. The longer you wait to get your identity back, the longer the thief will go about pretending they are you. Do not let it wait under any circumstances whatsoever.

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  • Most Common W-2 Corrections

    15 October 2015

    Filing taxes is one of the biggest headaches you can run across as a working, productive member of society. Since the tax laws change on what seems like a daily basis, it is really easy to get confused, follow the wrong instructions, and even fill out the wrong year form and not realize it, until the IRS, Internal Revenue Service, sends the whole shebang back to be redone. With that being said, read on below for some of the W-2 corrections and mistakes made every year, so you can hopefully avoid them.

    Using the Wrong Form for the Wrong Year

    You should always you the W-2 form for the year that you are filing, not the year that you are in. For example, if you are filing for 2003, you would not use the tax form for 2015. This can be confusing, but simply checking the date at the top of the form will help you to keep track. Just don’t get in a hurry to get it done and forget.

    Missing the Deadline

    While the April 15th deadline is firmly ensconced in most American citizens brains as the dreaded day that taxes are due, believe it or not, it is easy to get busy and miss the deadline entirely. This ends up in penalties, interest, and late fees that you don’t want to deal with. It’s best to just mark the date in red on the calendar then time you get it for the New Year.

    Math Mistakes

    One of the biggest mistakes that have to be corrected is the classic math mistakes. While everything is done on computer these days, mistakes can still be made and people are only human. Math mistakes can reduce your refund or end with you getting a correction from the IRS because you owe them money, you didn’t think you owed. It’s best to go over your figures carefully, before you click, submit to avoid mistakes on down the line.

    Additional Income

    Additional income from a side job or pension often lands people in the world of W-2 corrections. The IRS examiners will certainly let you know when you owe money on these things and you can be sure that they will come to collect. Sit down and think about it before you file those taxes and make sure that you have accounted for every penny you have made over the last year.

    Sign the Forms

    Believe it or not, especially when the form is being filed electronically, many people forget to sign the form. Your signature is required when you file your taxes, so be sure that you check the form and then check it again, to ensure that you signed in the proper spot and all lines are filled in as well.

    These are just a few of the most common W-2 corrections that you will run across when filing your taxes. Examine them, check your form carefully and this year’s tax filing should go off without a hitch.

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  • What to do if You Need to File a Past Year W-2

    16 September 2015

    The IRS, Internal Revenue Service, requires American’s to file a tax return if they are a working citizen and make over so much in a year. Many people fail to file the required forms and do not realize that the penalties and interest just continue to pile up year after year that you do not get it done. The obligation to file these taxes never goes away and can end in garnishment of your wages, seizure of property and even prison time if it goes too far. With that being said, read on below for some tips on what you need to do if you need to file a past year W-2.

    Collect Your Income Information

    You need to get together any W-2’s that you have, and if not get together all of the income information you can find for that tax year before you set out to get the taxes taken care of. If you are missing a W-2 and cannot get it from the employer, then you can contact the IRS or a tax site online to get the form you need to fill out or a replacement W-2. Once you have all of the information together, you are ready to file your past year W-2.

    Download Prior Year Tax Forms

    There are two ways to proceed from here to file your past year W-2. You can go to a professional tax preparer and have them file for you, or you can download the forms and do the taxes yourself. If you do not feel comfortable with doing your own past taxes, it is best to have a professional take care of the problem.

    You must always file overdue tax returns on the tax forms for that year, or you will be caught up in confusion it will be hard to handle.

    Prepare the Past Tax Returns

    Never forget that tax laws and instructions change from one year to the next, so before you start preparing your past tax return, check to see that the instructions are the same for that year that you are filing in. Failing to follow the proper instructions can end in you having to repeat the entire process while the penalties and interest just keep building.

    Submit the Forms

    Once you have prepared your past tax return, check it over a few times to ensure that it is right and you have not missed anything. If you owe anything to the government, make sure to include as large of a payment as possible, so that you can start to reduce those interest charges. Submit the form and wait for word from the IRS that it was received.

    These are the steps that you need to follow if you want to file a past W-2. Evading filing your taxes is a serious offense and is punishable by fines, prison, or both if you keep failing to respond to notices. File your taxes when they are due, just to be on the safe side.

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  • Benefits of Filing a 1099-Misc Online

    2 September 2015

    The leaves are turning colors and the mornings and nights are cooler, this not only means that fall and winter are soon to follow, but dreaded tax season is right around the corner as well. The question for many self-employed people now becomes should they file their misc. 1099 online or should they take it into a professional instead. That question of course is one for the ages and has been being asked ever since the Internet was invented and became the medium for doing everything. With that being said, read on below for some of the benefits of filing your 1099-Misc online this upcoming tax season, as well as some of the drawbacks.

    Pro: Saves You Time

    If you are an independent contractor, then you already know that time is money. Filing online allows you to file from the comfort of your own home, making it possible for you to have time to do the things that really matter. Things like contacting clients or spending time with your children trump sitting in a tax professional’s office any day of the week.

    Con: Mistakes can be Made

    As with anything else, striving to file your 1099-Misc online can end in mistakes for some. That is why it’s important to use a reputable online service to file your 1099-Misc. Never go to the first site you click on to file your taxes, make sure that you do your research, read reviews, and choose the most reputable of the companies that are available to you today online.

    Pro: Saves You Money

    If you choose a reputable online site to file your 1099-Misc then you can be sure you will save money in the long run. When you think of the $100’s of dollars you will have to pay a professional service as opposed to the $40 or $50 you will have to pay online, the choice is actually pretty clear if you think about it. If you want to save money and your 1099-Misc is not very complicated, then filing online is the best step for you, if you want to save money. If you are an independent contractor, then you know that not only is time money, but saving money where you can is important as well.

    Con: No Extra Help

    The biggest problem with filing online is that you have no help if needed. There are some sites that offer online chat help and if you are stuck, you can ask questions. However, if you have a question that you can’t answer, you are best served by calling a professional and seeing if they will answer it for you. Taxes don’t have to be the scary thing they used to be, so filing online is simple, easy, and very doable.

    These are a few of the pros and cons of filing your 1099-Misc online. The benefits outweigh the cons by a ton as you can see. Weigh them carefully this tax season and see what is the best option for you.

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  • Basics of 1099-Misc Reporting

    26 August 2015

    One of the most common reasons for receiving a 1099-Misc is that you are self-employed or worked as an independent contractor at some point during the year. In most cases, clients are required to send you a 1099-Misc reporting form if you made over $600 with them in that tax year. There are sometimes when that is different, but not often.

    As a self-employed professional, you are required to report everything you made on that 1099 during tax season, just as you would be if you filed a W-2. However, it is a little different when you are filing a 1099-Misc reporting form than it is when you are filing a W-2. With that being said, read on below for some of the basics of 1099-Misc reporting.

    Taking Deductions on a 1099

    One of the great things about filing a 1099 over a W-2 is the deductions you can claim on your Schedule C. Of course, the deductions must be ordinary business expenses, meaning a gold necklace for your girlfriend cannot be deducted on your taxes but your office supplies can be. For example, a ton of expensive computer graphic equipment is considered necessary for someone in the graphic arts field, however, hiring a limo to dazzle a client will not be considered a necessity but a luxury instead and not a deduction to be put on your taxes.

    Self-Employment Taxes on a 1099

    As a self-employed contractor, your social security and Medicare taxes still have to be paid. However, you are required to add up and pay these taxes yourself; it will not be done for you. You should make sure to attach a copy of these taxes to your form when you file your taxes during tax season and turn them in.

    Estimated Tax Payments on a 1099

    One thing about working with a 1099 is that your employer will not take taxes out of your check like they do with a W-2. You are required to take care of these things yourself and should do so wisely. This also doesn’t mean that you can wait

    and just pay the taxes during tax season. Sometimes you are required to pay your taxes four times during the year. The best thing to do is contact a tax professional and see what the best way for you to go is when it comes to filing your taxes when you are using a 1099.

    Online or Professional Filing

    There are two ways that you can file your 1099-Misc. You can file online or you can go to the professionals and have them take care of it for you. It is best to make a list of the pros and cons of each and then decide which is the best route for you and your business.

    These are just a few of the basics of 1099-Misc filing that you will need to know for help throughout the year and into tax season. If you have questions, the professionals at Wage Filing will be happy to help you.

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  • What You Need to Know about IRS E-File

    19 August 2015

    IRS e-filing gives taxpayers the option to file their taxes online using prepared software approved by the IRS, download filing forms for free off of the IRS’s website, or find and work with a tax filing professional that has been authorized by the IRS. This is somewhat like websites that help individuals and businesses file their taxes online, except you are working directly with the IRS.

    E-File Providers

    If you are part of a business or are self-employed, you will want to sign up to be an authorized e-file provider. This means that you, along with anyone else you might have worked with in the most recent taxable year, will be able to file your taxes in one place. This makes the process really simple when it is time for you to gather all of the information needed to report your taxes to the IRS. You will have all of your clients and employees’ personal and income information all in one place, which will make it so much easier for you to review and send out.

    Depending on your business structure, you will be able to choose the best software for you and your company. You will then be able to file your taxes online and gather all information needed from clients or employees to turn into the IRS. Working with an e-filing service will also make sure that there are no mistakes so that you can receive a better tax refund.

    Easy Navigation

    Whether you are self-employed, part of a partnership or corporation, a charity or a non-profit organization, or want to become an authorized e-file provider, the IRS’s website makes it easy to navigate through these options. For each area of business, you will be able to see all forms involved in that business entity, as well as FAQs, contact information, and the ability to see the status of your e-filing.

    The IRS is very forgiving for first-timers, which means that if you are unsure of where to start, they will be able to help you with explanations of the process and information regarding certain business structures. The IRS also offers taxpayers the opportunity to free tax preparation help. If you decide to file your taxes on paper, the IRS offers free filing papers for you to print out so that you can do them in the comfort of your own home instead of online.

    Impacts on Taxes

    Just because you know which business model you follow and how many forms you are expecting from your employees does not mean you are overlooking something. There are many different life events that can affect how you file your taxes, which are all outlined on the IRS website.

    These events can include dependents, spouses, divorce, your health, losing your job or getting a new one, casualties, disabilities, and more. Before filing your taxes, think about if any of these life events pertain to you. If so, you will need to read the guidelines on how to file to account for these things. This can make the process overwhelming, which is why the IRS has also included links for assistance.

    E-filing with the IRS can be a good idea, especially if you are looking for an in-depth, yet simple way to file taxes. Once you get the hang of it, you can become an e-file provider and work with another filing site like wagefiling, which is dedicated to helping individuals and businesses file easily.

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  • What Forms Do I Need if I’m Hiring Someone on Elance or Odesk?

    Contractors 2

    Elance and Odesk are both websites that employers can use to connect with those who are looking for freelance work. Freelance work is similar to the work contractors do because both are given a fixed pay for work that is done within a timeframe. After that work has been completed, they are no longer connected to the company unless the company wishes to rehire them for another project. If you are looking to hire someone from either of these websites, there are some forms you will need to complete for the next taxable year.


    W-9 Form

    The W-9 form will include all of the freelancer’s personal information including their Social Security Number, their Taxpayer Identification Number (TIN), and their full name. This is important for employers because it will help them get other forms started without having to continually ask the freelancer for more information.


    1099-MISC Form

    A 1099-MISC form is filled out by an employer or a client that pays a freelancer for their work. The freelancer must earn $600 or more for the 1099-MISC form to be reported to the IRS. A new 1099-MISC form must be filled out for every new taxable year. If a freelancer has worked with a handful of different companies or clients in the past year, the company must fill out a separate 1099-MISC form for each project the freelancer was hired for.


    Once a freelancer is able to gather all 1099-MISC forms for that year, they will be able to see how much they owe in taxes. As a company or client, keep any receipts or written agreements made with the freelancer so that it is easier to fill out the 1099-MISC form for that taxable year. This form will then be sent to the IRS and a copy should go to the freelancer so that you are both on the same page.


    1040 Form

    A 1040 form is used to report all income made through self-employment. A freelancer must also report any tax deductions so that they can determine the refund amount they will be receiving for that taxable year.


    All income must be reported on a 1040 form unless it is tax-exempt, which can be figured out between you and your client. The amount of tax you owe should be calculated using the grid on the instruction page or if you file online, the tax owed will be done automatically. The 1040 form is the most basic version of this form, but depending on the type of work you do, you may need to fill out other forms in conjunction with the 1040 such as the 1040A, 1040EZ, or 1040NR.


    Sites like wagefiling help freelancers by consolidating all reporting forms in one place and making it easy to fill them all out. Once the forms have been filled out, they can be sent to the IRS right away so that there is no chance of defaulting on your taxes. Wagefiling also lets freelancers keep all past documents in an organized place where they can be saved to your computer or printed out. These forms can be referenced later for future tax reporting, as well.

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