Does anyone know the difference between a 1099 and 1040?

59

thunderex said:
59

Click to expand...

Oh you didnt:redflip :nanana :redflip

runninhorn said:

Oh you didnt:redflip :nanana :redflip

Click to expand...

wait... let me check. oh. yes. i did. :twofinger

A 1099 is a form that an employer sends you (similar to a W-2)...typically it's sent to people that are more of a consultant-type. Someone that a company paid but that's not an actual employee of said company. I used to get them when I was modeling.

A 1040 is a form that you send the IRS to report your earnings. And by the way...it's a 1040EZ, not a 1099EZ. A 1040 doesn't actually proved that you were employed by anyone, just that you filed a tax return (you'd have to do a 1040 for trusts and investment income even if you didn't have a job). A W-2 or 1099 are sent from an employer to you. That's proof.

Basically, a 1099 could be used to show that you were employed in some capacity by a company. They paid you for something.

1099's are used when your employer does not take the taxes out of your paycheck, as if you are a contract employee. W-2's are for when they do take the taxes and you are full time.

JDogg said:

1099's are used when your employer does not take the taxes out of your paycheck, as if you are a contract employee. W-2's are for when they do take the taxes and you are full time.

Click to expand...

+1

Oh, and all tax returns are 1040's

1040 - Long form
1040A - Short form
1040EZ - Very short form

thunderex said:

59

Click to expand...

:crackup :crackup :crackup

If you got a 1099, dont forget to add it to your taxable income. The employer reports it to the IRS, and if you dont file it, they will audit your ass.

ok, thanks for the info, and just wondering, if you owned your own small business, what kind of tax form would you fill out?:confused

That depends on how your small business is setup. If you are incorporated, the corporation needs to file it's own tax return and you file the same 1040.

If you are a sole proprietary business, then you simply file eveything on your 1040 and complete the appropriate schedules.

I can't say what you would fill out if it were a partnership or LLC.

if its a partnership you fill out a 1065.......as an LLC you can choose to be taxed as any of the entities......so you could be an llc taxed as a corp(fillout a 1120), llc as an scorp (1120s), llc as partnership (1065), or llc as a sole proprietor (fill out a schedule c with your 1040).

also a company doesnt have to send you a 1099 unless they paid you over 600 for the year. This doesnt mean you arent supposed to file on it, but if its less than 600 they dont turn it in to the IRS either.