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How to prepare IRS 1099-MISC 2013

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FAQ - IRS 1099-MISC 2013

What is the purpose of IRS 1099-MISC 2013?
The purpose of IRS 1099-MISC is to give you a clear picture of the income and deductions that you are eligible to claim (including the standard deduction). You must use this form for tax year 2013 and all future years unless you have the option this year to file for a special form of Form 1040EZ. You may also use this form for any other tax-related reason. We use the data from this form to make sure we are keeping accurate records. Do you have to use this form if I'm filing for the standard income tax rate? Generally, you may use the 1099-MISC even if you are filing for the higher income tax bracket. However, you may have some disadvantages including that you may be required to include Form 1099-MISC on your return if you exceed your standard deduction; this could result in a lower return. What are some possible reasons for using Form 1099-MISC? You may use the 1099-MISC to: report changes in gross income report certain self-employment income report capital gains and losses report taxable pensions report certain interest and dividends earned report qualified retirement plans report contributions to insurance or annuity plans report income from a trade or business report income from a partnership report income from real estate and partnerships involving mortgages or other personal property report certain Social Security benefits paid by a spouse (which is not allowed if you are filing jointly) report interest paid on deposits (or any of the amounts to which interest is apportioned) under a personal banking account or savings account reporting an increase or decrease in the tax basis of certain assets, including stock, mutual fund shares, and qualified retirement plan accounts reporting the value of a foreign currency acquired under a tax exchange You also may use the 1099-MISC if you are paying for certain medical and dental expenses incurred after November 10, 2012. What happens if I do not use the Form 1099-MISC for the full tax year? You may use a special 1099-MISC if you meet certain conditions. If you are claiming the standard deduction, your tax return for any year you use Form 1099-MISC will be delayed by the 30 days during which you must file that form.
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