A 1099 form is actually a series of documents that reports the income from self employment earnings, government payments, interests and more. This form is referred to as Information Returns by Internal Revenue Service, which is commonly abbreviated as IRS. You can search for IRS form 1099 to gather more information about these forms.
There are various different kinds of 1099 forms. The different forms report the different types of income you may earn throughout the year apart from your regular salary, which your employer pays you. It is the responsibility of the person who pays you to fill out the appropriate 1099 tax form and send it to you by Jan 31.
As mentioned earlier, there are different types of 1099 form for your different types of income. You will receive a Form 1099-MISC from all your clients if you are an independent contractor like a freelance writer or artist. However, only those clients who pay you$600 or more during the tax year will send you this form. You will receive Form 1099-DIVif you are the owner of a portfolio of mutual funds or stock investments. This form would report all your dividends and other distributions that you receive throughout the year. You will get form 1099-G if you receive income from any of the government agencies. Apart from the 1099 forms mentioned here, there are several other form that report your income from different sources like Interest income, cancellation of debt etc.
The 1099 E-file service was introduced to make the lives of businessmen owning small businesses easier by allowing them to file for 1099 tax form electronically. This can be done just in few minutes and hence can save their time. With 1099 E-filing service, you are allowed to skip the 1096. The major reason behind the fast emerging importance of 1099 E-Form filling is the campaign for supporting green revolution which aimed at saving paper and hence the trees.
The 1099 E-file service holds a significant importance as it often has the power to import data from various other services like online Payroll, online payroll for accountants etc. But, if you do not use any other special services then you also have the option of using 1099 E-File Standalone Service. With this service, you can enter all your data manually.
There are various companies, which provide 1099 E-filing service, and the price of this service varies from company to company. Some companies may charge you $0.55 for each form while other companies may charge you $1.25 or more. The companies providing the E-form filing services also provide some optional services to print and mail your 1099 E-Form. However, these services do not come free with the E-Form filing service. You will have to pay some extra fee for these additional services. You usually have to create a user account on the website through which you are filling your 1099 E-Form. You can also check the status of your form through this account.