When should I file a form 1099?
On One Hand: Freelancers DoIf you are employed by a company or person but are not technically an employee, you must report your income using a 1099 form. People who file 1099 forms are usually contracted as freelancers, and taxes are not deducted from their pay. Types of people who frequently file 1099 forms include writers, actors, artists or anyone hired to do a specific job or work for commission.On the Other: Employees Don’tPeople who are employed by a person or company and have taxes deducted from their wages do not need to file a 1099. For people who are technically employed, businesses must take taxes from wages, but from freelancers they have no obligation to do so. However, people who receive interest paid them by the government may still have to file a 1099.Bottom LineIf you receive pay from which the taxes are not deducted, you will likely have to file a 1099 form.
