Should I Worry About 1099s?
No…and yes. If you’re a freelancer, gig worker, or independent contractor, you’re probably familiar with the infamous 1099 form. But if you’re new to the game, you might be wondering: Should I Worry About 1099s?
First of all, what is a 1099?
It’s a tax form that’s used to report income that’s not earned as an employee. If you’re a freelancer or independent contractor, your clients might issue you a 1099 at the end of the year to report the income they paid you.
So, should I Worry About 1099s? Well, that depends on a few things.
Firstly,
you should know that receiving a 1099 doesn’t necessarily mean you owe more in taxes. If you’ve been keeping track of your income and expenses and filing your taxes correctly throughout the year, receiving a 1099 shouldn’t be cause for alarm.
However, if you haven’t been keeping track of your income and expenses, or if you’ve been underreporting your income, receiving a 1099 could be a wake-up call that you need to get your tax situation in order. Ignoring it could lead to penalties, fines, and even an audit from the IRS.
Another thing
to consider is that if you’re expecting a 1099 but haven’t received one yet, you should reach out to your clients and make sure they have your correct information. It’s possible that they forgot to issue you a 1099, or that it got lost in the mail.
In summary,
while receiving a 1099 might not be cause for immediate concern, it’s always a good idea to stay on top of your taxes and make sure you’re accurately reporting your income. And if you do receive a 1099, don’t ignore it – make sure you understand what it means and take any necessary action.
Should you worry about 1099’s?
Yes and no.
There you go. And remember the IRS, they don’t care. They want their pound of flesh.
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