The 1099 series of informational forms is one way to submit this information. Business owners use #Form1099 -MISC to report payments to independent contractors. Form 1099-C reports the cancellation of debt payments. Form 1099-DIV and 1099-INT are used to report dividend and interest payments. These are considered 1099 payments, along with compensation for royalties, payments of commissions, rents and annuities, cash payments to fishermen, crop insurance proceeds, and prizes and awards.
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Send Form 1099-MISC – As mentioned above, if you paid your contractor more than $600 within the calendar year, you must send her a form 1099-MISC at the end of the year. If you kept her form W-9 on file, you’ll have everything you need to send this document. Be sure to get it to her by the deadline, January 31st. Be sure to be timely. Failure to do so can lead to fines and penalties.