IRS Form 1099-MISC is used to report certain types of miscellaneous compensation including rent, royalties, prizes, and awards, healthcare payments, and payments to an attorney. It is also used to report nonemployee compensation for independent contractors, freelancers, sole proprietors, and self-employed individuals, but this changed starting in the 2020 tax year. A taxpayer would receive a Form 1099-MISC if they paid at least $10 in royalties or $600 in other types of miscellaneous income to another person throughout the calendar year. Form 1099-MISC must be completed and filed with the IRS, and the recipient must receive the form by Feb. 1 and file it with the IRS by March 1 (March 31 if filing electronically). Recipients are required to report the payments as income on their tax returns.
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