I'm really confused about the 1099, some send it some do not. However, I notice that I only have two copies one for me and one for the state.

Do I not need one to send with my federal return? Claiming a home office has me wanting to avoid any more red flags to the IRS. Thanks

I file online and therefore don't need to send 1099 copies w/my taxes. The people who issued the 1099 to you should have sent THEIR copies in to the Feds, state, etc. In other words, I wouldn't worry about it...

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Lily is dead on. The 1099s are simply information returns. Just stick them in your file.
You will pay your taxes on your actual taxable receipts and many clients won't send you a 1099. Especially if your job was for less than $600.
Just make sure that your taxable income that you report is not LESS than all the 1099s filed for you. But if you are honest and reporting all your income, this never happens.

P.s. I've never seen a state copy. Some states may have special rules.

Originally Posted by SaraASB

P.s. I've never seen a state copy. Some states may have special rules.

The sender is supposed to send the state their copy as well as submitting the federal copy.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Ohh, was she talking about FILING annual 1099s? Sorry about that. Then yes, the sender can produce a state copy, if their state requires it. GA does not unless there is backup withholding involved. I use a program called MAGFILE to electronically file QuickBooks generated 1099s (and W2s)

I thought she received an extra copy from a client. Recipients should only receive a recipient copy, which they simply need to verify and then file.

No, I think she received an extra copy and wasn't sure what to do with it. The manual 1040 form says to attach any 1099s to it. Some states ask for it as well, but some don't. No confusion there!

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Could you help me find where is says "any"?

It is my understanding that you don't have to attach any of the 1099's unless they have tax withheld. The 2008 form says W2s and only mentions a 1099-R.

And, I have never seen a 1099-misc with tax withheld. Usually the only 1099's that withhold tax are the investment 1099's.
The form does say to attach any 1099-R with tax withheld.
Thanks!!

I concur with Sara regarding paper (postal mailed/filed) returns: all W-2s. Also form W-2G and 1099-R IF any tax is withheld.

Regarding 1099-MISC: If you are compensated for nonemployee compensation or rents or other income ($600 and above), royalties (gross $10 and above), etc. (there are others on the 1099-MISC) and going by rules pertaining to these, Federal and State taxes can/should be withheld.

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Jules, SunRise Virtual Solutions - WordPress Customization & XHTML/CSS Web Sites

As long as you track your income/expenses and file properly to both State and Federal, you shouldn't need to worry about attaching received 1099s with your tax return (chances are, you won't HAVE 1099s from all of your clients).

If you are creating the 1099s, you need to send a copy both to Federal and State as per their instructions as well as to the entities for which you issue the 1099s.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Originally Posted by Office Goddess

If you are creating the 1099s, you need to send a copy both to Federal and State as per their instructions as well as to the entities for which you issue the 1099s.

You need to send Form 1096 with all 1099s to the IRS and the address for your State. It requires a total amount reported from all forms being submitted, and a total amount withheld (if nothing is withheld, you still need to send). It also provides check boxes for the types of forms being submitted, including the various types of 1099 forms and other income forms (W-2G, 1098s, etc.). To clarify a bit, you need to submit separate 1096's for each type of 1099 (MISC, R, INT, etc.[there are around 16 different 1099s ]) with total amount for each type. If you have ten 1099-MISC and five 1099-R, you would be sending two 1096's...well, four if you count State, with the respective copies of the 1099's.

I'm now.

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Jules, SunRise Virtual Solutions - WordPress Customization & XHTML/CSS Web Sites