1099-MISC Tax Form

Definition: The 1099-MISC (download) is a form used to report to the IRS income paid to an independent contractor. It is also used to report rent, royalties and a variety of other types of income. For independent contractors who work from home, often in freelancing or consulting, it is commonly used to report non-employee compensation (box 7).

If you are paid $600 or more dollars as an independent contractor by one company, that company should issue you a 1099-MISC by January 31 of the following year. For 2008 tax returns, the date is February 2, 2009, due to the traditional deadline falling on a Saturday.

Likewise, if in your business you pay an independent contractor $600 or more, you must issue him or her a 1099 by that due date. You must file a copy with the IRS as well. See IRS 1099-MISC form for more details.

Note: If you are an employee that telecommutes from home, you should receive a W-2 form reporting your income and the taxes withheld.

More:

• Correcting a 1099
• What to Do with a 1099-MISC

_{Disclaimer
I am not a tax attorney, CPA or tax preparation specialist. The information here is meant as a general guide. For specific questions about your own taxes, please refer to IRS publications or consult a tax specialist.}

Also Known As: 1099, 1099MISC