When it comes to tax season, all the responsibilities a business owner must take care of can be overwhelming, especially when it comes to the fine details. You aren’t alone if it feels like there are a lot of things to keep in mind when you need to file a 1099 form.
There are plenty of individuals out there who may have to file a 1099 form with their taxes but aren’t quite sure how to do it correctly or if they need to at all.
In addition to offering financial advice in all areas, Gonzalez & Arrambide has the answers to all of your 1099 questions. This team of Weslaco CPAs and vCFOs is here to give you the best advice for the next tax season!
What Is a 1099 Form and Who Would Need One?
Before you’re able to see how to file one, it’s important that we break down exactly what a 1099 form is.
1099 forms are a way to report taxable income outside of normal wages, salaries, and tips to the IRS. While someone who receives payment through more traditional means would report through a W2 form, 1099 forms help identify and track other forms of income.
Some examples of cases where a 1099 form would be used include:
- $600 or more in rental income, prizes, through third-party entities or services that a non-employee performs
- $5000 or more in a direct sale for the resale of another item
- $400 or more for any independent contract work
While there are more specific examples, these are the general cases where individuals and small businesses would need to use a 1099. Thankfully, a certified public accountant or vCFO can help with this and many other forms!
How a Weslaco CPA or vCFO Can Help
As well as actually filing the report for you, there are many reasons to employ a CPA or vCFO to assist with your 1099 forms.
For one, you have tons of work to do if you’re an independent contractor, manage a small service-based business, or sell on a third-party website. Let a professional financial advisor take the stress off your back in addition to expert financial analysis of your records!
Virtual chief financial officers and certified public accountants can also help out in the long run and benefit your business long after tax season’s over.
Gonzalez & Arrambide in the Rio Grande Valley Know How To Help
We hope that you now feel a lot more comfortable with the concept of 1099s, but remember that there are always people to turn to for optimal advice. Gonzalez & Arrambide has the top certified public accountants and vCFOs in the Rio Grande Valley because we go above and beyond for our clients.