How to Send Out 1099 Forms
- 1). Total all of the "non-employee compensation" made to the recipient of the 1099 form in the box labeled "7." This includes all payment information made to anyone who is not employed by you (like independent contractors) who received money for services throughout the year. This number should also include all commissions and fees.
- 2). Read boxes "1" through "6" on the 1099 form to determine if you paid any money throughout the year that falls into the listed categories. These boxes are labeled. For example, box 1 is for any rent (like real estate rentals or equipment rentals) paid throughout the year. Box 2 is for any royalties made to the recipient of the 1099. Box 5 is for any proceeds made from the sale of a fishing boat.
- 3). Write the total amount of federal income tax you withheld from the recipient of the 1099 in the box labeled "4" (if applicable).
- 4). Write the name and address of yourself or the company you represent in the "Payer's Name" box at the top of the 1099 form. Write your social security number or employer identification number in the box labeled "Payer's Federal Identification Number." Write the recipient's social security number or employer identification number in the box labeled "Recipient's Identification Number."
- 5). Seal the 1099 form in an envelope and mail it to the address you have on file for the recipient. The 1099 form must be post-marked by January 31 or it will be considered late by the Internal Revenue Service and is subject to penalties.
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