What is a 10-99?

Answer 1

There are a large number of forms in the 1099 series. While each hs a specific purpose, they are all similar in what they do. They are used by a reporter, who is generally obligated to report some item...interest paid for example (a 1099-INT), or debt that has been cancelled (a 1099-C), or activity in a brokerage account (a 1099-B), etc. Generally what they are reporting, BOTH to you and the IRS (who gets a copy of the form you receive), is something you must report on your return...and if you don't, consider that the computer matching programs to check on something like this are fairly effective.

Answer 2

Income tax season is always a complicated time for people. Most of us are used to forms such as the W-2 and 1040. These are the two most common forms that relate to taxes. However, there are other forms that may have an impact on a lot of taxpayers. For example, many freelance or contract workers will receive a 1099 form. Here is a guide to understanding the 1099 form.

The most common 1099 form you will see is the 1099-MISC form. Essentially, this form reports the income you made from contract or freelance jobs. If you freelanced with multiple companies, you will receive multiple 1099 forms. A 1099 form will be sent to the IRS and you provided you earned $600 or more at any freelance job. Unlike a W-2 form, you will not see any federal or state tax deductions. This is because in most cases, taxes are not withheld for freelance or contract jobs. However, just because taxes weren't deducted doesn't mean you are not liable for them.

While the 1099-MISC form is the most common, there are several other 1099 forms. Essentially, there is a form for any income you make outside of a primary job. The 1099-B form is used to show your proceeds from any stock transactions. The 1099-S is used to show proceeds from a real estate transaction. If you received distributions from any retirement plans, you will receive a 1099-R.

Different 1099 forms have different filing requirements. When you file your taxes, you will be required to list all of your 1099 information as additional income. Your 1099 forms must be mailed to you by a certain date, usually January 31st. This should provide you with ample time to review your 1099 statements. 1099 statements often contain errors. If this is the case, it is important to request a new version in a timely manner.

Usually, you will pay taxes on your 1099 income when you file. Depending on the amount you owe, it could simply mean a smaller tax return. If freelance income is your primary money source, you will likely owe money. To avoid issues related to this, you can arrange for quarterly tax payments to the IRS. This can save you a lot of stress at tax time.