How To File 1099 NEC and 1099 MISC explain very very very In-Depth Tutorial
Channel: Michael Quan
Date: 23/06/2021

https://www.youtube.com/channel/UC2qCYGFS_QJP8Y0ZQT0nnkQ?sub_confirmation=1

Here is a tutorial on how to send and file a 1099 NEC and 1099 MISCELLANEOUS to a contracted employee. This is different from if you receive 1099 which will be in a future video. The video will show a guide on what you need to know and what you need to put in each box. This also includes examples of possible scenarios that would fit your case. Timestamps and outline are below! 

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Timestamps:
00:00 Introduction of 1099
00:35 What are 1099 use for and how it is applied
05:50 List of all types of 1099 
06:05 Showing how to fill out form 1099 NEC and MISC explain in detail
19:32 Where to file/send 1099 form (physical and digital forms)
20:22 Places base on your state where you send 1099 form
20:44 If you are LAZY!
21:43 Thanks for watching!

~~~Summary of the video below~~~

HOW TO PREPARE FORM 1099-NEC AND 1099-MISC – 
How to prepare:

⦁ Form 1099-NEC

Form 1099-NEC is for each person in your business to whom you paid at least $600 during the year. This payment would have been for services performed by a person or company who IS NOT your employee.

⦁ Form 1099-MISC

Other payments that is not for service and is over $600 for things such as rent, prizes, and awards, or “other income payments”
For those self-employed people, freelancers, or rental property owner, most of them receive Form 1099, but they forget to prepare and send out Form 1099 from their end. 
 
WHY:  Why do you need to file form 1099 to the IRS and send a copy to each person you have paid?

⦁ First, You want to take the deduction for expenses that you pay others
⦁ Second, You don’t want to pay penalties for not filing 1099s
⦁ Third, off course you want to minimize that tax payment that you have to make because YOU receive a 1099 from others.
⦁ On you business tax returns, regardless corporation, partnership, or sole proprietorship, the IRS asks you whether you make payments to other that requires 1099 filings.
⦁ The IRS requires a Form 1099 for each person to whom you have paid during the year: At least $10 in royalties or interest. At least $600 in: Rents, services, such as payments to lawyer, handyman, repair, drivers, delivery, temporary workers who are not your payroll, and et. AS LONG AS they are not a CORPORATION.
⦁ What if you don’t file?  Well
The penalties for not filing 1099s can add up quickly and vary from $50 to $110 per Form depending on how long past the deadline the company issues them. In fact, if a business intentionally disregards the requirement to provide a correct payee statement, it is subject to a minimum penalty of $550 per statement, with no maximum

WHEN:  When should a form 1099 to be prepared?
BY 1/31 of next year.  For example, you need to file 1099 for 2021 before 1/31/2022.

HOW?
Here is a step by step instruction:
⦁ Where do you get the form?
You can order a copy of the scannable form from the IRS online for FREE.  Or you can buy these from at Staples or Office Depot or Amazon.  
https://www.irs.gov/businesses/online-ordering-for-information-returns-and-employer-returns
OR Call 800-829-3676 to place an order.

⦁ Have a summary of the total payment per person that you have paid
⦁ Have a form W-9 filled out by the person who you paid – This is very important.  Have them provide the signed form before you pay them.
⦁ NOW, let’s prepare the form:
⦁ Form 1099-NEC  https://www.irs.gov/pub/irs-pdf/f1099nec.pdf

⦁ Form 1099-MISC  https://www.irs.gov/pub/irs-pdf/f1099msc.pdf
File Form 1099-MISC for each person to whom you have paid during the year:
⦁ At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
⦁ At least $600 in:
⦁ Rents.
⦁ Prizes and awards.
⦁ Other income payments.
⦁ Medical and health care payments.
⦁ Crop insurance proceeds.
⦁ Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
⦁ Generally, the cash is paid from a notional principal contract to an individual, partnership, or estate.
⦁ Payments to an attorney.
⦁ Any fishing boat proceeds.
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

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