In an effort to help make filing taxes easier this year, we are breaking down the various IRS tax forms to help you know if you need them, and how to use them.
If you’re a freelancer or run a small business and use independent contractors, you’re probably familiar with the 1099-MISC form. This form is used to report income to freelancers, independent contractors, and other self-employed individuals who, as their own employer, are generally responsible for paying the employer’s and employee’s portion of taxes.
Thanks to its versatility, businesses and clients use the 1099-MISC form for many different kinds of transactions. It’s very useful, but also potentially confusing because of all the data it can hold.