What benefits could a person in real estate receive from filing a 1099 tax form? ...Is that how they file commision? How exactly does it work and what all could be claimed? ..Anything would be helpful!!!!
2006-09-22 08:08:29 · 9 answers · asked by AUDREY H 4 in Business & Finance ➔ Taxes ➔ United States
The 1099 form is sent by a business to the IRS to report money paid to independent contractors. The contractor must receive a copy by 31 January each year.
The value to the contractor is in keeping track of income. However, you must declare all income received, including any not covered by a 1099 (this would happen if you received less than $600 froma business during the year). So reliance on 1099's to prepare your tax return is not a good habit to get into. It is better to get used to keeping a record of all income as you receive it. I have found that this usually means you keep a better track of your expenses as well, which tends to mean a lower tax bill!
2006-09-22 08:16:39 · answer #1 · answered by skip 6 · 2⤊ 0⤋
You don't file a 1099. The employer would send you a 1099-Misc for non-employee income (if your income is over $600). This would then be put on a Schedule C (subject to self employment tax), unless you have a company, then it would be put on the return for the company. The 1099 is sent to the IRS (just like a W-2 is) so the IRS has a record of it. Keep track of your expenses for this business since some of them may be deductable. You may want to see an accountant when it comes to filing your tax return if you have more questions.
2006-09-22 08:18:35 · answer #2 · answered by mlongmuir 2 · 2⤊ 0⤋
You seem to believe the 1099 is an alternative to the 1040. It is closer to a W-2. 1099s are used to report non-wage income. Examples include 1099-int (interest), 1099-div (dividends), 1099-misc(income not covered by other 1099 type), etc. The person or organization paying the money files the 1099, not the recipient.
2006-09-22 10:41:36 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
A 1099 is a statement of a person's earnings, contractor, subcontractor, etc. One might accumulate 50 or more in a year,
(for example) work every week for a different home builder as a
brick mason, etc. get 50 or more 1099's (unlikely)
There is no benefit other than the required social security payment documentation, which could help in the end, provided you pay it when you pay your taxes.
What gets "claimed" if I understand you correctly, is the total of the 1099's.
2006-09-22 09:38:23 · answer #4 · answered by The Advocate 4 · 1⤊ 0⤋
Usually a 1099 is given to you by the individual that paid you.
It is more beneficial to the payer than the payee. Filing a 1099 will increase your income and your tax liability. However if you made very little money and you file for the earned income credit (must have dependents) then increasing your income will increase your refund.
2006-09-22 08:12:40 · answer #5 · answered by Jazz 4 · 1⤊ 0⤋
Any income received over $600.00 requires a 1099 to be given. It could be for commission or anyone who is self-employed etc. It is income and it has to be reported on your tax return. If you do not report it and the IRS catches up to you there will be penalties for not filing.
2006-09-22 08:11:25 · answer #6 · answered by Stacy H 3 · 0⤊ 0⤋
As I recall, a 1099 is filed to report investment income.
2006-09-22 08:10:35 · answer #7 · answered by Akkakk the befuddled 5 · 0⤊ 1⤋
1099 are for people who are considered selr employed. with a 1099 you can write off any of you business expenses.
2006-09-22 08:12:22 · answer #8 · answered by grumm_dmons 2 · 0⤊ 0⤋
Better check the IRS website or ask an accountant to be safe!
2006-09-22 08:16:44 · answer #9 · answered by dodge_bee 3 · 0⤊ 0⤋