Turbo tax business question on 1099-misc?

Question

I started a very small business in 2008 and now I need to send 1099-MISC to contractor.
I purchased the Turbo Tax Business and print out the 1099-misc forms and sent to the contractors. Is it ok with the IRS? I think I just follow the instructions on the Turbo tax will be alright, but there are some friends said the form must meet the IRS specifications and it has to be done on IRS form or red-drop ink...bla..bla..bla....
can anyone give me your 2 cents?
thanks.

Answer 1

The Turbo Tax form will probably be compliant. It is fine to give these to the contractors. You also need to submit a copy of any 1099's to Social Security Administration along with a 1096. A 1096 adds up all of the 1099s and reports the total numer to SSA. Even if you only give out one 1099, you still need to send the copy A of 1099 to SSA along with the 1096.

Answer 2

If the software generated them, they are fine. The software will print the forms in the correct format with every number exactly where it should be on the form.



The issue your friends are talking about is if you needed to just one form and didn't want to buy software to generate the 1099 and 1096. The forms at IRS.GOV can be viewed, but not downloaded as they are intended to be machine-readable without software, even with a fillable PDF, they wouldn't work.

Answer 3

You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%.

Read: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html