1040 Forms vs. 1099 Forms
Key Differences
Comparison Chart
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Source
Requirement
Nature
1040 Forms
These are one of the IRS (Internal Revenue Service) forms which are used for taxpayers and the companies which do not have to pay tax to report all the information related to their finances in the United States. The stuff which is included in these types of forms include the total pay, total income, calculate tax which is to be given to the government and show other data which is required depending on individual circumstances. The Form 1040 is one of those which is used for the US Individual Income Tax Return, and these are the ones which are available in three types depending on the requirement. The first one is 1040 Long Form, the second one is 1040 short form, and the last one is 1040 EZ form. These are used to tell the details based on personal data and show the federal income tax returns to the IRS. The first of these forms was published in the year 1913, and after 1916 it was made a yearly form which has to be filled by people who are working at the time or have some income source. The IRS initially used to send them over the mail, but now a person has to obtain it from the department. The form itself has two pages, on the first one the details about the individual who has to fill the form are entered, they also include what are the sources of income and how the adjustments are made. The second page is for calculating the total tax which is to be paid with the help of deductions and additions that are required.
1099 Forms
As explained earlier the department of revenue of the United States has different forms which are available for people to fill depending on the nature of their job, how much they are earning and what is the source. One similar type is the 1099 series in which people have to report their sources of income which are other than the usual wages, salary, and tips which they get from customers. The best example of this will be the money that has to be transferred from one account to the other after the signing of an agreement. The forms are therefore also known as 1099 contractors since they are frequently used by people who are doing this work, though it has many other purposes. After the year 2011, anyone who buys or sells property also has to fill this form depending on the nature of the place which is being rented or sold. The person who is making the payment or the one who is getting the amount has to fill the form. Four copies of this are used, the first one is for the payer, the second one is the one who receives, one is from the IRS, and the last one is for the State Department for Tax. There is another requirement that a person who files more than 250 forms also has to fill the 1096 form while the one who submits less than 250 only has to fill a standard IRS form. If a person is earning less than $600, then there is no requirement of filing this form on a yearly basis.
