Tuesday, March 2, 2010
1099 Not Necessary for the Recipient
June --
Technology Consultant. Last year I went full-time self-employed in August. I earned about 15,000 in that time frame.
How long does the company I worked for have to get me the 1099 stating I made money? They haven't sent it yet, and I'm not sure when they are sending it. I don't want to get in trouble by filing my taxes and claiming the income with no 1099 (and I wouldn't want to file the taxes and not claim the income).
Eric
Eric --
You, the recipient of the 1099, do not need to have a copy of your 1099. It is not sent to the government with your tax return as is the W-2. Just be sure to claim all the income you made. Here's more info 1099s W2s W4s W9s . Never-sent and erroneous 1099s are the reason I encourage indies to keep a record of income. I explain how in my petite publication The Confident Indie: Five Easy Steps.
-- June
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3 comments:
Thanks June, that clears it up immensely.
I am in the same situation also with not having received my 1099. If there is a discrepancy in my income records and those of the 1099 employer what could be the ramifications? Is there any benefit for the employer to indicate a lesser amount on the 1099 than what my records actually reveal?
Thanks,
BOB
Bob --
You keep "income records." You get 3 gold stars for keeping an income record. So many indies do not.
There are no tax consequences if your records show more than the person or company for whom you worked. Always claim all your income.
If the person for whom you worked sends a 1099 stating more income than is in your records, then you need to contact him and get the matter resolved. Keep copies of all correspondence if this be the case.
BTW -- the person or company that pays you is not your employer. Only employees have employers. You are self-employed that's why you receive a 1099.
-- June
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