When you file your taxes for the first time as a blogger, it can be a little difficult, especially if you have never filed as anything other than a regular employee before. You will now receive form 1099 Misc instead of a W-2 containing all of your income-related information.
Although many bloggers haven’t seen these, independent contractors have of course seen them before. So what exactly do you do with this form? What if you earned money but never received any?
Don’t worry if you have never had a small business. The first time you deal with 1099 Misc forms, it’s typical to feel a little puzzled. You can learn more about 1099 forms and how to manage them on your tax return by reading the following tax advice.
Information about Form 1099 for Bloggers several 1099 forms
There are numerous variations of 1099 forms. The 1099-DIV and 1099-INT are two types of 1099 that you might be more familiar with. You can obtain your tax data for the dividends and interest you were paid throughout the tax year from these.
The Form 1099 Misc is comparable in that it gives you details about the income you received to aid in the preparation of your taxes. (So when you receive these in the mail, store them with your other tax documents and provide them to your tax advisor.)
What Blogging Means for the 1099 Misc
What connection exists between blogging and 1099 miscellaneous forms, then?
Non-employee compensation is reported using the form 1099 Misc. This implies that it is utilized, for instance, by independent contractors. They may work for a corporation even though they are not its employees. Therefore, non-workers receive the 1099 tax form rather than the W-2, which is for employees.
Common misunderstandings regarding 1099 MISCs
Let’s clear up the major misconceptions with 1099 Misc forms since there can be a lot of them.
You are not required to report that income if you do not receive a 1099 Miscellaneous.
This is a resounding “no.” You are not exempt from reporting that income just because you did not receive a 1099 Misc. The IRS doesn’t care if you were meant to get one but didn’t. You declare the income because you are aware of it.
There can be explanations for why you didn’t get a form. Being paid less than $600 by one firm is a significant issue. Or perhaps the business that compensated you made a mistake.
I feel compelled to stress this as much as possible, not getting a structure doesn’t mean you are excluded from detailing the pay.
It tends to be normal for bloggers to get limited quantities of cash from a few sources, so monitor your profit and report them all.
Getting a 1099 Misc Means You Needn’t bother with To Settle Independent work Duties
At the point when you are a customary worker, the FICA charges, Government managed retirement, and Medicaid, are removed from your check. You cover the first part and your manager covers the first part. At the point when you are independently employed, you are answerable for the entire expense. This is your independent work charge.
A lot of bloggers are accustomed to getting a W-2 with generally their duty data. The FICA is dealt with on that structure. So they could imagine that since they got a tax document with their pay data that these duties are as yet taken care of. They aren’t.
On the off chance that you get 1099 Misc structures for your payment, you are as yet answerable for your independent work charges. (What’s more, you are liable for them regardless of whether you get any 1099 Misc structures.
PayPal Didn’t Send You a 1099 Misc Form
There can be some disarray concerning 1099s and PayPal. The 1099 Misc is simply appropriate to money, checks, and ACH bank installments. On the off chance that you were paid with a charge card or through PayPal, you won’t get a 1099 Misc.
PayPal and other Visa handling frameworks have their structure, the 1099-K. The base sum required for this structure is higher than that of the 1099 Misc so you probably won’t get a 1099-K. Be that as it may, very much like with the 1099 Misc, it doesn’t make any difference on the off chance that you get a structure or not. You want to report the payment. Occasionally an organization will pay you through PayPal yet send you a 1099 Misc. You will need to carry this into consideration of your duty proficiency, as the IRS could think you got more cash flow than you. (Getting the two structures could mean twofold answering to the IRS.)