Meet the Editors. The Form is one of the IRS's main weapons in fighting under-reporting by the self-employed. Find out your obligations to file one as an employer. These include: payments to corporations except for incorporated lawyers and payments to doctors for professional services to a business payments for merchandise, inventory, telephone, freight, storage, and similar items, and payments of rent to real estate agents but the real estate agent must use Form MISC to report the rent paid over to the property owner.
Here are the parts of this form and where to send each: Copy B and Copy 2 are for the independent contractor and must be provided no later than January 31 Copy A must be filed with the IRS no later than January 31, Copy 1 is for your state taxing authority if your state has a state income tax; the filing deadline for most states is likely January 31, but check with your state tax department, and Copy C is for you to retain in your files.
Talk to a Tax Attorney Need a lawyer? Start here. Practice Area Please select Zip Code. How it Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you. Taxes and Tax Law. Personal Income Taxes. Business Taxes. If you are expecting a and you do not receive it by January 31, the IRS recommends contacting them at You will be able to use a substitute form to file your return and you may even still be able to eFile it.
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OVERVIEW Both the Form W-2 and Form serve a similar purpose—to report income you earned from sources throughout the tax year—but each is issued under different circumstances and requires slightly different approaches for tax season planning. Your Form The Basics The form , by contrast, records income you received as an independent contractor or for some other source of income.
Where forms differ from W-2 forms is in tax withholdings. Taxes are not usually withheld by the payer. As a freelancer, you're responsible for estimating your taxes and paying the self-employment tax. Instead of withholding taxes with each payment, you'll make tax payments quarterly based on your estimated annual tax liability. All you need to know is yourself Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.
Looking for more information? Related Articles What is a W-2 Form? Get more with these free tax calculators and money-finding tools. Stimulus Check Calculator See if you qualify for a third stimulus check and how much you can expect Get started. Make sure you know how to tell the difference between an independent contractor and an employee before you submit a Businesses do not need to provide NEC forms to workers they hire on these platforms.
Otherwise you can find all the information you need for tax filing in your account. You hire a local landscaper to come in and beautify the area around the eighteenth hole.
The landscaper works solo, operating as a sole proprietorship. He comes in and plants eighteen miniature palm trees. You realize, based on the local climate, tropical plants may not be a suitable decoration. You decide that you want giant replica Easter Island heads by the eighteenth hole instead.
You get in touch with Global Stonework Megacorp Inc. You do the work, and they love it. If you hire an independent contractor, you must report what you pay them on Copy A, and submit it to the IRS.
You must report the same information on Copy B, and send it to the contractor. You report the income listed on Copy B on your personal income tax return. The standard method for acquiring this information is to have each contractor fill out a Form W As a best practice, you should have a W-9 on file for each of your independent contractors. Having contractors fill out a W-9 should be one of the first administrative tasks you complete after engaging their services.
Check your bookkeeping records to confirm the total amounts you paid to each contractor during the tax year. Once you have all of the required information, use it to fill out Form NEC.
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