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Those who work solely for one corporation as an employee and those who work independently, contracting out their services, file taxes in very different manners.  Those who are employees of one company will be sent a W2 Form to fill out and file for taxes, while those who are independent contractors will have to fill out a 1099 Form.  A Form 1099 Misc will need to be used when these contractors do a number of services like work as attorneys, physicians, performers or those who receive royalties.  The Form 1099 Misc is one of many in the 1099 Form Series that is meant for independent contractors that make income for services provided, but not for permanent employment.  Of course a Form 1099 Misc is only necessary if you make over $600 in non-employee income in a given year.  The Form 1099 Misc is basically given for any services and other kinds of payment that is not covered by other forms in the 1099 series.  If you fall under this category, the companies that employed you as a freelance worker will send you your Form 1099 Misc and you will need to file it and send it to the Internal Revenue Service for tax purposes.

There are a few things to keep in mind to make sure that filing your Form 1099 Misc goes smoothly and is done correctly.  If you are a freelance worker and anticipate filing Form 1099 Misc your first step is to get organized and make sure you can sort out where you are obtaining different amounts of income from.  Keeping records of all your earnings and wages will make tax reporting time a much easier process because you won’t have to search for the information you need.  Your clients will be sending you a Form 1099 Misc at some point before the spring.  You will then need to file for taxes and make sure that all of your numbers add up on all your forms and that you are complying with the tax laws and paying the correct amount.  Another important thing to remember if you anticipate filing Form 1099 Misc, is to keep your expenses organized.  Traveling, rents, or any repairs that are related to your freelance work for a company will be covered in this organization.  Make sure you can easily sort through and find these expenses because they will be of great use to you when it comes time to file your Form 1099 Misc.  There are various deductions that can be made outside of the Form 1099 Misc that will lead to you paying a lot less in taxes.  Health care expenses that you personally pay for would be in this category.

If you anticipate that you will be considered an independent contractor by clients you have provided services for you will need to prepare to fill out a Form 1099 Misc.  This form covers anything not covered in other 1099 series forms as well as services you have provided to the company such as work as an attorney or a performer.