Who must use the 1099-MISC & Independent Contractors tax form?


Quick Answer

The 1099-MISC is for individuals and businesses who pay an unincorporated independent contractor, a sole proprietor, a partnership or an LLC $600 or more for work done in the course of the payor's trade or business, explains Nolo. 1099-MISC forms are not needed for payments for non-business-related services.

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Full Answer

Form 1099-MISC is a multi-part form, as Nolo explains. Copy B and Copy 2 should be sent to the independent contractor and provided by the IRS-imposed deadline, which is usually January 31 of each year. Copy A needs to be filed with the IRS by February 28 if filing by mail or March 31 if filing electronically. Copy 1 is provided to the state taxing authority if the payee's state has a state income tax. Copy C stays with the payor.

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