Until April 18, residents of America must pass tax returns (Tax Return). The most important advice at the same time – be careful and do not relax even at the time of sending the declaration by mail, because if the address on the mail envelope is written incorrectly, it is believed that you did not send it on time.
1099 MISC is a form that is sent to anyone who has received more than $600 in income from one source. For example, personal consultant was hired for 3 time visit to the company and the visit costs $720. The entrepreneur is obliged to send this person 1099 MISC form by February 1 of the next year, where the entire amount for the year will be indicated. And consultant can use it to declare income. How it can get any easier?
Are W-9 and 1099 connected?
W-9 is used to clarify your name and TIN (SSN or ITIN in other cases), so later on vendor can use this info to fill out Miscellaneous report. Those, who fail to provide correct numbers or even refuse to do it will face money withhold and penalties. Worst case scenario follows those who either falsify the documents or try to steal personal information of any kind, including such innocent things as home address.
A clear definition of these kind of relationship is that one document coexists with another. IRS, business and hired freelancer are interlinked and depend on each other. As any kind of relations those bounds should be built on trust values.
Confused with data fields
It takes time to understand some fields and their definition when it comes to tax forms. Most confusing part is certification where person has to state it’s money withhold status. Make sure of your status before signing the document since it may cause a fee. In case you have any remaining questions W-9 is supplied with full instruction that clarifies what sort of data is required to be filled out.