Believe it or not, the season is approaching. No, not just the beloved holiday season, but tax season. Here at Clarity Finances, we believe in being proactive and working ahead when necessary. When it comes to tax season 2017, there are new due dates to know and some tools that can help you simplify this formidable process. Today we’ll touch on the changes specifically to the 1099-MISC.
The AICPA (American Institute of Certified Public Accountants) has advocated for changes to be made to our tax laws. While understanding anything about taxes can seem daunting to those who are not CPAs, the overall goal of the AICPA was to make life easier on accountants and those filing taxes.
One of the most noteworthy changes is in 1099-MISC. In the past, recipients were to receive their 1099-MISC forms at the end of January and the forms were not due until the end of February. The new due date for having your 1099 to the IRS is now January 31, 2017.
A 1099 is used by businesses that pay for services by an individual rather than a corporation. The IRS calls this non-employee compensation. If an individual has been paid $600 or more for services, they will be issued a 1099. If you haven’t gotten a start on issuing your 1099 forms now is the time. Prior to issuing the first payment to the individual, you should have a W9 filled out. The W9 form is used to record the name of the individual, their mailing address and tax ID number in addition to their signature stating that the information provided is correct.
When it comes to preparing and filing a 1099-MISC, there is accounting software that can help. Most accountants and bookkeepers, myself included, swear by QuickBooks. Some versions of QuickBooks can even print and e-file the proper forms for you. If QuickBooks has been used throughout the year, filing can be that much easier as the dollar amounts will be present from previous entries during the year.
QuickBooks is not the only option when it comes to filing 1099s or other tax forms. There are many other options out there today like 1099online.com and on the Google Play Store there is an app called Tax1099 that “is the first Android app to offer complete e-filing service on a mobile device.” Like businesses using QuickBooks throughout the year to keep track of their assets, individuals can use apps like Mint, Toshl Finance and Expensify. These are all great financial management tools that can be used to keep track of finances throughout the year and can help make life easier come tax time.
If this all seems too daunting, let Clarity Finances help by taking your from chaos to clarity to abundance! Click this contact hyperlink or click contact at the top of the page on ClarityFinances.com and we’ll get to work on any of your bookkeeping needs.