What are 1099 and W9 Tax Forms? | Track1099

[@AcuityEcommerce]

Thanks for watching! Have you used Track1099? Please share your experiences with it below!

[@ElRockeroDeLaSalsa]

I can't say that I have but I intend to learn all about it :-) Thank you again!

[@elizabethcady3260]

Easy to use and just what I needed to keep everything organized!

[@BethAnnesBest]

I've also used Track1099 for a few years. I think this will be my 3rd year. I really like how easy it is. I also like that if you have people fill out paper ones you can manually upload/enter them. And I also like that I can mail copies of them to older contractors that don't have email.

[@AcuityEcommerce]

Yep. Having done it the manual way for decades, using a tool like Track1099 is SO. MUCH. BETTER.

[@alexandrarobertson4474]

OMG!!!! I don’t know why not one single person could explain this to me!!! The IRS website is not helpful unless you can read every single PDF… Thank you so very much for explaining this.

[@AcuityEcommerce]

Glad I could help! Please be aware that since this video was made, the IRS split up 1099s into 1099-MISC and 1099-NEC. The 1099-NEC forms report independent contractor payments, and 1099-MISC catches everything else. Just wanted you to know. :)

[@omoruboreoluwatobi6115]

This video was very helpful. It happens to be best that explains the concept of 1099 and form W-9, after I spent many hours crawling the web. Thank you Patti Scharf

[@AcuityEcommerce]

Glad it helped!

[@BLULIU]

How about the prime contractors what do we need to fill out and do next?

[@SILVYAROMERO-th5tr]

This will be my first time doing TAXES and thank you so much the the info. I will get the TRACK 1099

[@AcuityEcommerce]

I hope it helps!

[@CC-si3cr]

I wish there was only a video for W9. Now I'm even more confused than before.

[@AcuityEcommerce]

I tried! Just the W-9 is easy... the person simply enters their name, address, entity type, and social security number (or employer ID number if it's a business). Sign & done! Give it to the person/company who requested it.

[@angeloflowers2006]

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[@elizabethcady3260]

This helped SO much, and Track 1099 is easy and wonderful! Thank you so much for this video and for sharing your knowledge!

[@AcuityEcommerce]

You're very welcome!

[@TeddyJSmooth]

Cute and smart go Ms CPA Patti.

[@AcuityEcommerce]

LOL - Thanks!

[@tekluwoldegebreal8880]

wow i like your explanation 👍

[@AcuityEcommerce]

Glad you liked it!

[@raitisstalazs3721]

Great video, but I wish you showed how to do the transfer within Track1099 because that's precisely what I am struggling with - moving W9 to 1099 :(

[@AcuityEcommerce]

Thanks! We'll be updating this video for next year, and I'll keep this feedback in mind. In the meantime, see if this video helps you out. (Second half of the video.) kzbin.info/www/bejne/hqW3mXmkh8SmatU

[@stealthuniversalproduction2729]

Thanks for the information, very helpful!!!!

[@AcuityEcommerce]

Glad it was helpful!

[@kingsleysarfo.]

Thank you

[@AcuityEcommerce]

You're welcome

[@andrewmusholt9327]

Gonna give it a try! Thank you!

[@AcuityEcommerce]

Hope you like it!

[@HotPretzel12]

Excellent video! I much appreciate the referral to Track1099.

[@AcuityEcommerce]

Glad it was helpful!

[@catrinapodberesky385]

Wow they do have a file & form for like everyone 🗽

[@AcuityEcommerce]

And then some.

[@sspector100]

Thank you so much for this information I will try using track1099

[@AcuityEcommerce]

You're very welcome.

[@cordellfrancisjr]

very helpful. thank you

[@AcuityEcommerce]

Glad it was helpful!

[@dedespencer3450]

Thanks so much for sharing! Awesome video! 👍👍👍

[@AcuityEcommerce]

Thanks for the kind words!

[@carolmarrero6826]

Great info. Thanks

[@AcuityEcommerce]

Glad it was helpful!

[@SLCKaled]

You are amazing 👏❤💖💕THANK YOU SO MUCH

[@AcuityEcommerce]

You are so welcome!

[@sojazziehomegirl]

Excellent Info

[@AcuityEcommerce]

Glad you think so!

[@kris_ta8459]

Thank you for making this video!

[@AcuityEcommerce]

My pleasure!

[@deansalazar6129]

beautiful explanation

[@AcuityEcommerce]

Thanks!

[@americaboy506]

If you sold stocks then you have to print out the w-9 form for tax return right.before we click on sources to get the exact year pdf format.but it is change,when we open the account I can’t get it

[@AngelicTroubleMaker-LaVooDoo24]

Great video. Also the LLC information pertaining to these forms , please provide that info please. Thx so much

[@AcuityEcommerce]

Do you mean, what do you select if you're an LLC? Here's the deal... you can have different tax treatments depending on how many members are in the LLC and/or the type of tax election the company has made. So if you're an LLC, you select that legal entity & then choose your tax classification (S Corp, partnership, Corporation.). Corporations don't get 1099s, but partnerships and single-member LLCs do.

[@katycox752]

great video, thanks so much! so easy to understand

[@AcuityEcommerce]

Happy to help!

[@joannthomases9304]

W 9's also goes to IRS or IRC or both ? Courts ? Do the people loan money to the courts ?

[@rayonwilliamssportsandfun2106]

Dont kno if ull answer. But I did a work for a group. Cost abt $350 . And they telling me I have to fill out a w9 form b4 I get pay . Why do I have to do that ??

[@AcuityEcommerce]

Short answer - because it's the law. Longer answer... think of it as if you applied for a job (as an employee). The first thing they have you do is complete Form W-4 and an I-9... even though no work has been done yet. Same thing here. They don't know if you're going to make more than $600 this year, and it's easier to take care of the paperwork upfront.

[@booandbrifam]

Hi, thank you for all this great information. I am an independent home health aide and only worked for a family for a short period of time. They never paid me and only owe me $125. They are now demanding I fill out W-9 in order to receive payment owed to me. Am I required by law to provide them with a completed W-9 in order to receive money owed to me even though it is under $600? Thank you!

[@AcuityEcommerce]

Technically, yes, I believe so. A lot of businesses make this a requirement since they are the ones responsible for filing the Forms 1099, and it's often MUCH more difficult to obtain a completed W-9 after the service provider has already been paid. This is just like completing a W-4 for a new employer.

[@timthenurse]

So if I'm just a individual, not a business, corp, LLC, or DBA, what box do I check if I'm doing manual labor for a company as a side job?

[@AcuityEcommerce]

"Individual/sole proprietor or single-member LLC" (although the IRS may argue that you should really be an employee... depends on the circumstances)

[@rubyescobar9379]

Great Video- i wished-I would have to seen this video before Since I didn’t have the knowledge about w-9, neither 1099 - on May 2019 therefore I paid more than 28,000 to the Independent Contractor; then later I mailed these forms via certification U.S. Postal Service-to the Independent Contractor however he never return these forms. What should I do next? ?

[@AcuityEcommerce]

Legally, you should be withholding taxes the next time you pay them. A lot of businesses make it a policy to require completion of the Form W-9 before allowing the contractor to provide any services.

[@kindree5414]

Regarding W-2’s, I don’t have to file my tax return if I am single, 20 years old, a dependent under their parents, not claiming a child, and made under $12,000... is that correct?

[@AcuityEcommerce]

Perfect question for a tax advisor... which I am not. :)

[@Yuli-bj1tz]

I have a question so I work for a company and they send me a 1099 misc form but not a 9w form do I still need to file my taxes ?

[@AcuityEcommerce]

If they send you a Form 1099, they already have the information they need to file it (so no need for the W-9). Yes, you should always be tracking your taxable income and filing according to state and federal laws.

[@itinual8051]

So here’s my question: I’ve been living in London for 5yrs, was born in NYC but also have Italian citizenship. I want to start affiliate marketing online but have been asked to fill out either W9 or a W-8BEN form in order to receive commissions. Which one of the two should I fill out? Which one will be more advantageous for me?

[@AcuityEcommerce]

That sounds like a great question for your tax advisor. :)

[@Not_me_again]

As the service provider, would I need to get a W9 in order to get my 1099, or can I just give my 1099 and skip the W9?

[@AcuityEcommerce]

If they give you a Form W-9 to complete, you are required to fill it out. However, if you give them the necessary info through other means, they may not ask you to complete one.

[@shaquanpratt9579]

Thanks! is it too late to send in a 1099? I am going to use Track 1099. Once I have them fill out the form will the system automatically send the info to IRS and to the contractor or is it as simple as a click of a button?

[@AcuityEcommerce]

Just slightly more complex than the click of a button. If you file it now, you will definitely have late penalties, just so you know.

[@mickeyflowers]

Perfect.

[@AcuityEcommerce]

Thanks!

[@Mochicat90s]

I don’t have anyone to put on a 1099 but I still got one. I’m 25 that worked retail last year so I’m super confused. Please help!

[@AcuityEcommerce]

That means you worked as an independent contractor for someone else (at least they believe so). If you don't agree, you'll need to talk to the company who sent it to you to find out why.

[@tomorrowsbridges2832]

I really appreciate your info. I do have 1 question, if I paid all my transactions through Cash App is a 1099 required, or are they on the same level as PayPal / Stripe as a payment processing platform???

[@AcuityEcommerce]

Here's an article that might help you out. www.cnn.com/2022/01/24/success/tax-reporting-rule-for-payment-apps-fe-series/index.html

[@bestcity0979]

Do people who sell on ebay have to file W9 and 1099 or no? Do they only file 1099 misc or B?

[@AcuityEcommerce]

People who sell on eBay may *receive* a 1099-K from eBay for their sales. That's not the same as the 1099s I'm talking about in this video (1099-MISC). People who sell on eBay who hire others to provide services to them (the seller) and aren't exempt for one of the reasons I talk about will need to send a 1099-MISC to the service provider.

[@ElRockeroDeLaSalsa]

Loved the video. Thank you so much. You are definitely perfect for this ;-)

[@AcuityEcommerce]

Thanks, Miguel!

[@Preachingthechoirnow]

How can I fill it up 1099 if I am an independent contractor? how can I also add expenses such as gas, meal, etc. thanks

[@AcuityEcommerce]

If you're an independent contractor, you are a business, so you do all the other business-y things a business does. You should be invoicing your customer for services you provide, and if they need to reimburse you for out of pocket costs, all of that should be included on the invoice. At tax time, you report your income and expenses just as any other business would (typically, if you're a sole proprietor, on Form 1040, Schedule C). And you should be talking to a tax professional. :)

[@leileilu]

Hi Patti, thanks for the great video!! I got an important question in. By mistake and not knowing (!) I filed the W9 (wrong form) which the client had asked me to fill in. So I did. Now I just realised after research that as a non-US citizen, living outside of the US all the time and owning a single-member US LLC, that I am supposed to file the W8-BEN form all the time. The issues now is that I got a 1099 form issued for the past 2 years! But never received any letter from the iRS. I would have expected a letter from the IRS due to the W9 form,. The only reason why I have not received a letter from the IRS is perhaps because I do my taxes with my tax agent filing the Form 5472 / 1120. So through the tax filing with my tax agent IRS might have figured out the issue and have not contacted me? I would love to correct the error because it drives me nuts knowing something is wrong and can be corrected. My question is now how and can I submit the W8-Ben form retroactively for the past 2 years?! I was never in contact with the IRS and wonder if I simply have to email them or if I should ask my client who had asked me to fill in the wrong firm at first to make a note and explain the IRS my situation? I appreciate your support and cannot wait to get clarity on that! Thank you!

[@AcuityEcommerce]

Forms W-9 and W-8 BEN don't actually go to the IRS... they go to the company who hired you as a service provider so they can collect the right information to file their forms with the IRS. With that said, if you received a 1099 form for the past two years, I would reach out to your tax preparer to figure out how to handle that (if it was two years combined on a single form, that's clearly wrong). Your tax advisor should be able to sort things out for you.

[@InfiniteInsights937]

@@AcuityEcommerce I have something similar, I'm on the other end, the receiving end as a I.C., a caregiver. I filed a W8BEN and W9. I received a 1099NEC but I don't know what to do with it, I'm also a non-US Citizen. They sent it in my name (sole proprietor) no taxes taken out. How should I file the 1099NEC? or do I file it?

[@AcuityEcommerce]

@@InfiniteInsights937 Your timing is great! I'm about to record an updated version of this video that will be posted in early January. :) In the meantime, I can tell you that the 1099-NEC is *just like* the 1099-MISC, so you should treat it the same way. If you are filing a US tax return, you just need to ensure you are reporting the income you earned (as shown on the 1099-NEC) on your tax return. That's it. I hope this helps!

[@hribrite9981]

Can individual with 1099-NEC income can provide 1099-NEC to other company?

[@AcuityEcommerce]

If the situation warrants it, yes. It's not uncommon for sole proprietors to hire other people for services. As an example, let's say you are a landscape architect who hires an accountant. You may receive 1099s for your services and issue a 1099 to your accountant (assuming no one is a corporation in this scenario).

[@musiclove1851]

1099 is simply a worker becomes an independent contractor so now worker do not get minimum wages he works at lower than minimum wage and then he pays his own ssi and part of employer's part of ssi about 20 % total deducted from his payment at the year end .Think like your job converts to your business you do not get unemployment no disability no family leave.

[@AcuityEcommerce]

Right. An independent contractor is really a business owner. Or rather, they are intended to be, but not everyone thinks of it this way.

[@carrieoneal9237]

If I start a (home-based/sole proprietor) virtual assistant business and I have a client located in another state, do I have to file with their state or just my state? This would be digital services like an emailed document created in Word and Excel. Thanks for the video!

[@AcuityEcommerce]

As a sole proprietor, you will file Schedule C on your personal income tax return as well as your personal state income tax return.

[@JosephKintzeleIV]

If you're single and you earn under $12,500 then don't have to file taxes for that year if I remember correctly, is still the same and is this different for a W-9?

[@AcuityEcommerce]

The two topics are apples and oranges. You need to provide a W-9 when one is requested by someone to whom you're providing services as an independent contractor, and you'll receive a 1099 if you exceed the thresholds.

[@mleeinvestllc3614]

Hi, Which 1099 do one use to send to contractors? 1099s or 1099misc?

[@AcuityEcommerce]

1099-MISC

[@BeeFree421]

Thanks for the video. My question is can I file 1099misc manually without track99 or Quickbooks? would I have to send the W9 after my contractor has filled it out to the IRS or do I keep that for my records. Ann end of year I fill out manual the 1099misc for my contractor, do I have to fill out 1099, one for my contractor, one for IRS (mail to them) and keep one for myself? Thanks a lot for help.

[@AcuityEcommerce]

Yep. Go here: www.irs.gov/pub/irs-pdf/f1099msc.pdf You can get paper forms and envelopes at any supplies store every January. The W-9s are kept with the employer's records (the IRS doesn't want them, but you will if you're audited), and you should always keep copies of your business records, especially anything you file with the IRS.

[@emmalou5955]

Can a nanny who also babysits for other families be a 1099 and should the lady I nanny for daily be sending me a 1099 form?

[@AcuityEcommerce]

Great question for your tax CPA. :)

[@givonhouse5904]

thank you, do you have to have contracter file out a w-9 or can you just have info and put in 1099?

[@AcuityEcommerce]

Forms W-9 (completed by the contractor) are for your records, and you keep them on file.

[@JRABFILMS]

If I don't make over 400 a year, I don't have to do anything right?

[@AcuityEcommerce]

Great question for your tax advisor. :)

[@isabellaclarke8069]

Who gets the 1099 if your vendor uses a factoring company?

[@AcuityEcommerce]

That's a great question for your tax advisor. :)

[@dindukurthyassociates1939]

hi, my company is an incorporation, i made some vendor payments in excess of 600$ do i need to issue 1099 ?if yes which form ?

[@AcuityEcommerce]

It depends on who you paid, for what, and how much. I recommend you watch this video for more information.

[@sathishkumar6942]

Hi, I am from India. I am doing a small services business with the US people's. Is mandatory to provide those some from my side?

[@AcuityEcommerce]

Hi Sathish - I believe US businesses will likely request a Form W-8BEN from you if you are providing services within the US but are not a US citizen. But like I mentioned... this isn't my area of expertise, so you might want to do more research beyond what I'm telling you here.

[@sathishkumar6942]

@@AcuityEcommerce Thanks for your reply.

[@AcuityEcommerce]

You're very welcome!

[@Ather178]

Sathish Kumar you’re working in India, why would you want to pay US government when you don’t live there, you’re already paying taxes to Indian government.

[@purified_sweet_pea2097]

So if i hire carpet cleaners i have to file out a 1099 and ask them for a w9?

[@AcuityEcommerce]

Unless they are incorporated and/or if you paid them less than $600, yes. Be aware that the IRS dusted off the 1099-NEC from a few decades ago, so you'd be filing a 1099-NEC instead of a 1099-MISC for them for 2020 (or 2021). Exact same concept but different form.

[@declaringhiswordvideos2840]

I have only digital downloads; no tangible products, inventory, invoicing, etc. What accounting software should I use?

[@AcuityEcommerce]

Here's what I've got on that topic. kzbin.info/www/bejne/ani5p2ehr7qDhK8

[@mleeinvestllc3614]

question: Which form to use 1099K or 1099Misc if I used credit card / paypal to pay contractors?

[@AcuityEcommerce]

If you paid contractors using a credit card or PayPal, you don't need to do anything. The credit card company and PayPal will take care of any reporting responsibilities for you.

[@karenronaldo8284]

I just got a college job as a peer mentor I’m I considered independent contractor?

[@AcuityEcommerce]

You'd need to check with them. It's whatever the two of you agreed to... either independent contractor or W-2 employee. :)

[@conniedovick8658]

Does an LLC vendor need a w-9 for packaging materials purchased and used for delivery of product? Thank you!

[@AcuityEcommerce]

I wouldn't think so. 1099s aren't required to be sent out for purchases of materials, only services.

[@beabea447]

I just applied to get an amazon FBA acct and they sent me a W-9 form. At the end of year they will send me how much I made under that form correct?

[@AcuityEcommerce]

I'm not familiar with the logistics, but you can expect a 1099 from them if you completed the Form W-9.

[@beabea447]

Catching Clouds Academy thanks!!!

[@bernadettestar]

Do I put my address on 1099oid for credit card at that address or do I put my company's address? TY

[@AcuityEcommerce]

I'm not familiar with that form. I would check the instructions at www.irs.gov.

[@95045Irma]

If aim a cosmetologist renting a chair the owner or I give 1099?

[@AcuityEcommerce]

Sorry - this is outside my experience. You'll want to ask your tax preparer.

[@gi-yp9qb]

I help a lady on her home every other week , she pays me cash and now she wants me to fill a w9 form before the year ends . Do i need to fill one?

[@AcuityEcommerce]

Yes. If you refuse to complete it, she would be required to withhold tax from future payments to you.

[@bnoyz3]

Hi. I just started with a roofing company (12/16/21) and am considered an independent contractor. This is my first time dealing with this. So, if i don't make at least $600 by the end of the year, I don't need to include the 1099 with my taxes? But, if i do have to file, can I still use 1040? I don't know if this is going to require me to hire someone to do my taxes...I've had them done for free at local library by AARP offered services. Sorry, not sure how the whole independent contractor thing works yet. I have to learn that along with a new trade. I'm keeping hand written notes of mileage, tolls, etc. I believe I've hear that there are apps for some of this now. Thanks

[@AcuityEcommerce]

The IRS would tell you that you have to report ALL the income you made (whether you receive a 1099 or not). The 1099 is just a form that tells both you and the IRS how much you received from your customers. The 1099 doesn't actually get filed anywhere with your taxes (unless there's withholding which is rare). The IRS gets a copy separately from your customer. For you, the way you report the income is probably going to be on Schedule C of your 1040, but yes, you should definitely find a qualified tax preparer to help you make sense of all this.

[@bnoyz3]

@@AcuityEcommerce thank you so much. Since I didn't start until mid-December, can I report all of my income on next year's taxes? I have not collected any income from the company, in hopes that I can figure it all out and start filing next year. Thanks again

[@joeshitlip4780]

just wondering why your filling out a tax class 5 form gift and estate that's not the right tax class form we are in tax class 2 I cant find the form

[@AcuityEcommerce]

I think you're in the wrong place here. ;)

[@i.can.sew.anythingchic3295]

Can I use this for previous years?

[@AcuityEcommerce]

I believe you can file late 1099s for awhile, but I'm not sure for quite how long, and I'm fairly certain you can't go back more than a year (i.e., filing 2018 1099s in 2020 or beyond). You'll need to check with Track1099 to know for sure what they can do for you.

[@madanneupane6806]

I have signed for the amazon affiliate marketing, but I didn’t earn even a single dollar so they close my account.. do I need to file 1099 ??

[@AcuityEcommerce]

Nope. If you had earned more than $600, they would've sent you the 1099.

[@olgaly705]

Am a contractor providing office cleaning i didn't get ask for 1099 form And am passing the contract to other subcontractors and pay by Etransfer Am in my first year and really confused in this steps

[@AcuityEcommerce]

I always give a completed W-9 to anyone we provide services to whether they ask for it or not. It's then your customer's responsibility to send you a 1099 at year end, but if they don't, you still report the income as if they had. If you have subcontractors, it's *your* responsibility collect W-9s from *them* and then issue *them* 1099s at the end of the year... unless you pay them through PayPal or a credit card (doubtful) or they don't qualify for some other reason. In short, whenever someone sends payments for services, they are also required to send 1099s unless there's a specific exception why you don't have to. Check the 1099 instructions from the IRS and/or talk to your own CPA for more details. I hope this helps.

[@armardhicks8440]

HI , how are you ? I am opening a small home base character company, I would like to used independent contractor. to be the characters, ,am I right in my assumption that they will have to fill w-9 tax forms and get 1099 at the end of the year?

[@AcuityEcommerce]

Probably, but you should discuss this with your tax advisor who knows more about your situation.

[@yoyohairstylist8813]

❤️

[@AcuityEcommerce]

😀

[@LifeLift421]

Hello there catching cloud academy. I am a landlord and my property manager gave me a 1099 form and the amount on there is a little over 10 grand. Do I need to pay taxes on this amount or just report it on my tax return? Please help. Thank you

[@AcuityEcommerce]

Hi Kenan - this is a great question for your tax preparer. :) At a minimum, you need to report it on your tax return. The IRS knows about the payments, so you can't ignore it.

[@fionaharrison2426]

Are you still current on here?

[@AcuityEcommerce]

We just rebooted our channel and are releasing new content weekly. Please subscribe!

[@cathypittman6369]

I was told if you made less than $600 , for the year , you didn't have to report a 1099.

[@AcuityEcommerce]

True.

[@ak60826]

Do you need to file 1099 if you use adp?

[@AcuityEcommerce]

You're going to need to ask ADP that question. :) I know that Gusto processes payments for independent contractors and will file the 1099s for you. I don't know what ADP does.

[@Israel10]

Graat Videom thanks Patti, can you help us send our 1099 forms if yes how can we contact you?

[@AcuityEcommerce]

Nope. We only do this for our ongoing clients. You can check out www.catchingclouds.net for more information.

[@cecillejames3734]

Ok didn’t really explained much about corporation and s / c Corp if they needed w9

[@AcuityEcommerce]

When in doubt, request an W-9, but 1099s are not required to be sent to either C or S Corporations.

[@elainenilsson5472]

what if they don't give you their ss# ?

[@AcuityEcommerce]

It's the law. They need to give it to you. Funny how employees never refuse to give you their SSN. They understand that to get paid, they need to provide it. Independent contractors should understand the same consequences. Those are the "shoulds." But more practically... if they don't give it to you, you have to do "backup withholding" which is you only pay them part of what you owe them and send the rest to the government on their behalf. If you've already paid them, you'll send in a 1099 to the IRS that's missing that info, and then they are 100% on the IRS's radar.

[@MrKarloz97]

So whom sends this form?

[@AcuityEcommerce]

The business will send the W-9 to be completed by the independent contractor so that the business has the information they need to send out Form 1099.

[@hueyshandymanironton4508]

740

[@apacheresources8117]

Patti, you are gorgeous.

[@AcuityEcommerce]

Thanks!

[@jameswhitman3934]

This is exactly why we need deregulation. Who knows that granny is commiting federal crimes by letting little Billy mow the lawn for $30

[@AcuityEcommerce]

The threshold is $600, and the IRS doesn't have the time, resources, and/or desire to go after either granny or little Billy, but I get what you're saying.

[@MyPolicyPro]

Thank you

[@AcuityEcommerce]

You are very welcome!