Today TaxMama hears from David in Dallas. “I’m preparing my own taxes this year and have a couple of questions. Does the I.R.S receive my 1099 forms from me or my employer? When does the I.R.S receive them and how often should they receive them in a year’s time? What are itemized deductions and what are charitable contributions? How do they affect your return? And which 1099 form should the I.R.S. receive from me or my employer (INT, MISC, etc.)?”
With all these questions, and the level of these questions, you should not be preparing your own tax return at all. While you’re quite ambitious, without even having a starting point about the U.S. income tax system, you’ll only end up overpaying your taxes.
To get a good start, read IRS Publication 17. All of it. You can read it online at http://www.irs.gov/publications/p17/index.html .
Or call 1-800-TAX FORM (1-800-829-3676) and ask IRS to send you a copy of this publication. This publication will explain all about charitable contributions, itemized deductions and more.
As to the questions about 1099s. Your ‘employer’ would send you a 1099-MISC. But, if you are being paid without deductions being taken, you’re not an employee. You’re in business for yourself. And you have so many other tax issues to deal with – and extra taxes, or potential tax credits, that you really should get tax advice. In fact, if you think you have an employer, odds are that the company you work for should have you on payroll rather than paying you as a freelancer. And there are all kinds of other ramifications and issues you should be discussing with them.
You’ll find many of these consideration in my book, Small Business Taxes Made Easy.
As to your other 1099 questions…IRS receives them once a year. Businesses file 1099s between January 1 and March 31st, depending on whether they are filed electronically or on paper.
And remember, you can find answers to all kinds of questions about tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 17 :: Your Federal Income Tax