1099s is a set of tax forms that contain records of payments for Internal Revenues Service (IRS) and taxpayers. They are considered necessary while tax filing because they have all the documents and reports for self-employed expenses.
Internal revenues service provides a direct deadline for filing and sending Form 1099, which is crucial to consider by both the freelancer and the employer.
The payer fills the form with all the necessary details, including the tax year’s payment report, and then sends a copy to the freelancer and the Internal revenues service.
If you are wondering what are the IRS Form 1099 due dates? And when do 1099s have to be mailed? This blog explains the answer to all your questions in detail with a basic understanding of Form 1099 for freelancers.
Important to Note
This blog contains information about the USA IRS Form 1099 due dates. If you belong to any other country, search for your local guide.
Additionally, we have added all the dates according to the US Internal revenue service. If you have any different specific situations, it would be best to ask directly from the IRS.
- Important IRS Form 1099 Deadlines That Freelancers Must Know
- Due Dates For Necessary 1099 Forms
- IRS State-Fixed 1099 Deadlines
- Late Filing Penalties For Freelancers
- Applying For Filing Extension
- Frequently Asked Questions
1. Important IRS Form 1099 Deadlines That Freelancers Must Know
Two types of 1099 Form deadline are issued by the IRS, which are essential to be considered by the freelancers. These two types of time limits are;
- Deadline for submitting 1099s to the IRS
- Deadline for submitting 1099s to the taxpayers
1.1. Deadline For Filing 1099s To The IRS
The due date of submitting the Form 1099 to the IRS differs for taxpayers and clients.
According to the Internal Revenue Service, the deadline for submitting these forms by small businesses and clients is 31 January; however, it is vital to make sure that they send the documents to the IRS by 28 February.
Taxpayers have two options for submitting the 1099s. The first is through the mail, and the other is electronic.
The deadline for filing the 1099s Forms for taxpayers is 28 February. On the other hand, if taxpayers prefer to present the 1099 Forms through the E file option, the deadline is 31st march.
Important Note: The deadline for the 1099-NEC form is 31 January for taxpayers.
1.2. Deadline For Filing 1099s To The Taxpayers
Businesses and purchasers must send the 1099 Forms to the taxpayers early enough that they can use them when documenting the taxes.
The deadline for taxpayers to send most of the IRS Form 1099 is 31 January. Sometimes the date changes if 31 January is coming on the weekend. In such cases, the IRS would extend the date.
The below-given sections explain some of the exceptions from 1099 deadlines specific to certain extents.
2. Due Dates For Necessary 1099 Forms
There are various kinds of 1099 forms; each one has its importance. But the freelancers will mostly come across some of the most common and remarkable 1099 forms, such as 1099-MISC and 1099-NEC.
Therefore, it is vital to know the time limit of the most common 1099 Forms your clients can send you.
Following are the five most common 1099 Form types that freelancers should know the deadline of these forms.
Before 2020, all self-employed recompense were reported by the 1099-Misc, but after that, it was replaced by the 1099-NEC.
Anyhow, it is still used for writing the miscellaneous service compensations that are not self-employed payments. The document will report remittances like awards, prices, and rents.
The most usual 1099 Form is 1099-NEC which independent workers and freelancers receive. It is the basic form they use to report their self-employed payments.
It describes freelance remissions of up to $600, including commissions, fees, and other types of payments.
All businesses and clients that compensate about or above $600 to a non-staff employee will have to send a 1099-NEC form to them by 31 January. The receivers filing 1099-NEC through e-filing or mail must do it till 31 January.
1099-DIV doesn’t address the income; instead, like other forms, it will track the record of earnings for the freelancers. The wages that are recorded on 1099-DIV are from the shares that are earned within the tax year.
The forms, as mentioned earlier, will derive from the agent firms, and it is essential to say that the surplus profits are chargeable, so it is adequate to report it ideally.
The financiers have to convey the 1099-DIV to taxpayers before 31 January, while this form’s recording date by mail is 28 February. Remember that the IRS demands you to do electronic documentation by 31 March.
Like other 1099 forms, this is also one of the common forms for freelancers whose deadline is essential to consider.
1099-INT will be received by those tax remuneration that makes above $10 interest profit by financial institutions such as commission firms and banks.
There are two deadlines based on different forms of filing. If the collector is documenting a paper filing, it is crucial to get it by 31 January and document it by 28 February. Contrary to this, if the recipient is going to file 1099-INT electronically, then the time limit for this is 31 March.
2.5. 1099-R, 1099-S and 1099-B
Among common 1099 Forms that should be considered by freelancers, 1099-R, 1099-S, and 1099-B are to be counted.
As a freelancer taxpayer, you can get these forms as well. These forms will not only report but also record various sorts of earnings.
- All the reports of payments issuance from pension or retirement plans are recorded in 1099-R
- The form for the real estate business is 1099-S. You will receive this form if you close a deal in the fiscal year.
- All the transactions from dealers, such as trading of stock, are reported in the 1099-B.
If you receive any of these three forms, remember that the time limit for their receipt is 31 January, and those who will pay the tax will have to file them till 28 February. In the case of electronic documentation, the 1099 due date will be 31 March.
All the deadlines mentioned in this guide are for the 2022 year. These dates might change in 2023.
3. IRS State-Fixed 1099 Deadlines
Although many states have the same IRS 1099 Form deadlines as the federal government, it is essential to note that few states have different due dates according to their additional filing prerequisites.
Therefore it is of highest importance to manage yourself updated with state-specific regulations where you file the tax.
Based on their 1099 form filing concerns, the four groups of states are discussed below.
3.1. States with No Filing Demands For IRS Form 1099
Certain states do not ask for filing for some forms of 1099 like 1099-misc. You will only need to file with the Internal Revenue Service in such conditions.
States that do not ask for the filing prerequisites are Wyoming, Washington, New York, Nevada, Tennessee, Illinois, and Alaska. So if you are filing the tax in any of these states, there are no filing demands for 1099 forms.
3.2. Associated Federal/ State Program
For reporting of 1099 forms, there is a joint program in some states with the federal government. It is a convenient program for most businesses and taxpayers as it makes filing form 1099 unchallenging.
The IRS conveys the 1099 forms to states like 1099-R, 1099-NEC, 1099-INT, 1099-MISC, 1099-DIV, and 1099-S. As a result, the taxpayers or businesses will not be required to send each form separately.
3.3. States With Ambiguous Filing Provisions
Many states have straight tax requirements for every single thing and filing the 1099 Form, but some states do not clarify the things. Furthermore, some states may ask the taxpayers to submit the 1099-misc form separately.
States that fall in this section are Pennsylvania, Oklahoma, Massachusetts, Iowa, and Oregon.
Before filing the tax returns on the 1099 form, it is suggested to do thorough research so that you could have a good understanding of the category in which your state is occurring and take steps for filing taxes according to their requirements.
3.4. States Asking 1099-MISC Filing For Retained Taxes
Next worth considering states groups based on the 1099 documenting prerequisites are those bound up with the 1099-MISC filing utilizing which the taxpayers are asked to only file 1099-MISC if they hold back the state taxes.
Such states that require you to submit the 1099-MISC for retained taxes are Utah, Kentucky, West Virginia, and Rhode Island.
4. Late Filing Penalties For Freelancers
If independent contractors get any 1099 Forms but fail to submit the files by the target date, the IRS penalizes them. Therefore your tax bill will increase continuously if you take longer to pay them.
But here is a plus point as well. Penalties are mainly for those consumers that have the responsibility of preparing and then sending the 1099 forms to the freelancers as well as to the Internal Revenues Service.
As a freelancer, it is infrequent that you will get a fine for not submitting the 1099 Forms before the deadline. Because here you are just asked to include all the profit information precisely.
However, the employers that delay submitting the forms of 1099 on time will also be asked to submit the fines. Ranges from $50 and $270. If you submit the paper within 30 days after the due date, you will reimburse $50 for late submission as acceptable.
But if you pay after the final date, but before 1st august, you will have to pay $110 for each 1099 form.
If someone fails to pay before 1 August, he will get a penalty of $270 for every 1099 Form. It is essential to consider that the maximum penalty could reach for small businesses as much as $556,500. And for large companies, the fine could be more than $1,669,500.
As internal revenue service lets you apply for additional time, therefore, due to any reason, if you fail to submit the 1099 Forms before the last date, it would be best to request an extension so that you would not get any penalty.
5. Applying For Filing Extension
If you as a taxpayer can not arrange to file the form 1099, then there is a good point that you can apply and request for some of the 30 days extension for certain 1099 forms.
But the IRS does not accept the attachments for the 1099-NEC form automatically; therefore, if a taxpayer wants an extension in the 1099-NEC, he should meet the criteria mentioned in the online seven of the 8809 document, which is available on the IRS official website.
6. Frequently Asked Questions
6.1. What happens if you send 1099 late?
If a business fails to send the 1099 Form by the due date, the IRS would ask for a penalty of $50 to about $270 or more to pay to the IRS.
6.2. At what dollar amount is 1099 required?
Anyone who is not your employee and you have paid at least $600 to that employee in one year will require a 1099 Form.
6.3. Can taxpayers file an extension for 1099s?
Yes, you can request a 1099 form for a 30 days extension. But if you want to apply for a 1099-NEC or W-2 extension, it is essential to know that only one 30-day extension for these forms is possible. However, for other conditions, more than one 30-day extension is possible.
7. Final Thoughts
This guide explains the IRS form 1099 due dates. Although 1099s consist of multiple forms, all of them are not related to only freelancers.
Therefore the most common and essential 1099s for freelancers are 1099-MISC, 1099-INT,1099-DIV, 1099-NEC, 1099-R, 1099-S, and 1099-B. Considering the final date of these forms is of utmost importance.
The penalty is not applied to any freelancer; instead, the employer pays the fine. If an employer fails to submit the forms before the due date, he could face the issue of giving a fine to the IRS.
However, if one applies for additional time, the IRS will use no penalty for a late submission.
The most straightforward way of filing 1099 forms on time is by asking the freelancer you contract with to fill up the W-9. The document ensures you have all the necessary information, including the taxpayer identification number, to file the 1099 Forms.
As the IRS makes sure to declare the 1099 due dates clear for the taxpayers so that you would not have any confusion about it, it is your utmost responsibility to submit the 1099 Forms on time to avoid any penalty.