What is a 1099 Form?
In the world of income and taxation, corporations, small businesses, and other employers use a variety of forms to record the income earned by an employee or an independent contractor. Typically, employees of a business receive a W-2 form that lists the income they received during the year. This form also contains deductions taken from that income in the form of federal and state taxes, deferred compensation and social security contributions, to name a few. 1099 forms are used for a number of reasons, though, typically, they are given to independent contractors–also known as “freelancers”–as a record of the income they received from a particular business. On a 1099 MISC Form, the income earned will be noted, but there will not be any deductions for federal and state income taxes, nor will any deferred compensation, social security, or medical deductions be taken. Since the 1099 recipient is not an employee of the business, the business is obligated only to tender the income to the co
The 1099 form is used to report earned income by an individual who is not a regular employee of World Relief. A 1099 form is only used when there is a difference between the money that you have raised verses the amount that you have expensed for your trip. Any raised funds that you have spent and cannot report as an expense needed specifically for your trip must be counted as income and reported on a 1099 form. 14. I have funds left over at the end of my trip, what happens to the money? Any funds left over at the end of the trip remain in the Ambassador Program to cover any unexpected expenses or for program needs. IRS guidelines state that in order for funds to be tax deductible, funding must be used at the discretion of World Relief. In order for us to stay compliant with these guidelines, it is critical that all of your supporters understand that they are giving to the program and not the person; therefore any funds left over at the end of a trip cannot be given directly back to the
