Navigating tax requirements as a Pro can be complex, but understanding the basics of Form 1099 is crucial for managing your finances effectively.
What is a 1099?
A 1099 form is a document used for tax reporting in the United States. It's issued by entities (such as employers, banks, or businesses) to report various types of income paid to individuals other than wages, salaries, or tips. This includes income from self-employment, interest, dividends, rental income, and other sources. The recipient of a 1099 form is responsible for reporting the income listed on it when filing their tax return.
What Qualifications Must a Pro Have to Receive a 1099?
if a Pro earns $600 or more from YellowBird during the tax year, YellowBird is required to issue a 1099-MISC form to the Pro and report the income to the IRS. However, even if a Pro earns less than $600 from YellowBird, they are still responsible for reporting all income earned on their tax return, regardless of whether they receive a 1099 form or not.
When will I Receive a 1099?
YellowBird will send 1099 tax forms by the IRS deadline of January 31, 2024. Unfortunately, we will not be able to send them earlier than this date.
What should I do to ensure I receive my 1099?
Please make sure that your address in Stripe is correct. If you were paid via both Stripe and QuickBooks, we will use the address listed in Stripe as the correct one. Verifying your Stripe information now will help ensure there are no delays or issues.
In the United States, the last day to file taxes typically falls on April 15th of each year. However, if April 15th falls on a weekend or a holiday, the deadline may be extended to the next business day. Additionally, taxpayers may request an extension to file their taxes, which typically extends the deadline to October 15th. It's essential to check with the IRS or a tax professional for the most current information regarding tax filing deadlines.
Looking for more information? Reach out to our Customer Success team at operations@goyellowbird.com.