Form 1099-MISC is issued to individuals, trusts or companies to record earnings that result from income that does not come from employment. If during the fiscal year more than US $ 10 in royalties or US $ 600 in payments was obtained, the company that paid the money issues a 1099-MISC form to the recipient. The income reported on the 1099-MISC form must be recorded on the tax return in order for the expenses to offset the income.
Get form 1099-MISC, which must be sent by the company that paid you. You must receive it before January 31 of the year following receipt of income. Call the company and ask for a second form if you have not received the first.
Record the income in Schedule C of the Internal Revenue Service (IRS) that accompanies the 1040 tax return form. Report the gross income of all income from Form 1099-MISC on line 1 of Schedule C. Complete the spreadsheet to take all available deductions to offset income and reduce tax payments.
Report the net income on line 12 of Schedule C, on your Form 1040. Complete your tax return and include Schedule C in your return.
Sign and send your tax return with a check that covers the taxes you owe.
Sole proprietorships will use Annex C with form 1040. Corporations submit a form 1065, corporations S submit form 1120S and corporations C submit form 1120, and all record earnings on line 1 under gross income.