Happy New Year! It's that time again. . .
Tax Time. . .
While there is still time to file your income tax
returns, Information Returns, i.e. Forms 1099 and W2, must be
postmarked by February 1st.
A Form W2 must be filed for
each person to whom you have paid:
- From whom Income, Social Security or
Medicare taxes have been withheld or would have been withheld had
the employee claimed no more than 1 exemption.
- Remuneration for
services paid as an employee, including non-cash payments, even if
the employee is related to the employer.
A Form 1099 must be filed for
each person to whom you have paid:
- at least $10 in royalties or broker
payments
- at least $600 in rents, services
(including parts and materials), prizes/awards, other income
payments to an individual, partnership or estate;
- any fishing boat proceeds; or
- Gross proceeds paid to an attorney
(including a law firm).
- Sales of $5,000 or more of consumer
products to a person for resale anywhere other than in a permanent
retail establishment
- Dividends of $10 or
more.
- Any payments from which federal income
tax has been withheld under backup withholding rules
Generally,
amounts paid to corporations are exempt. However any amounts paid
to an attorney/law firm, whether or not incorporated, must be filed.
My fee
for preparing 1099s or W2s is $125. This amount includes 5 W2s or
5 1099s, additional forms are $10 each.
If you would like to have me prepare these for you, please call or
email me to find out how to add these services to our agreement.
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