Fill out a 1099 form using the information provided to you on the individual's W-9 form, says Linda Richard for the Houston Chronicle. This includes the person's name, address and Social Security number for filling in the appropriate spaces on the 1099 form.Continue Reading
When filling out a 1099 form, you need to indicate the type of payment you made to the individual receiving the form and how much you paid him. The most common 1099 is the1099-MISC, and that does not need to be filed if you paid the person under $600, according to Richard. For independent contractors being paid $600 or more, you need to indicate how much you paid the individual in Box 7 of the 1099-MISC. If an attorney is being paid for his services, that amount is noted in Box 14. Box 14 and Box 7 are both subject to self-employment taxes.
Other payments that can be indicated on 1099-MISC include crop insurance proceeds and medical and health insurance payments, explains Investopedia. Copy A of the 1099-MISC goes to the IRS, while Copy 1 goes to the recipient's state tax department. Copy B goes to the recipient, as well as Copy 2, which is then submitted with a copy of the recipient's state tax return. The business should retain Copy C for its records.Learn more about Taxes