If you’re an independent contractor/hosted agent, sometime in late January you’ll normally get a little surprise in your mailbox:
A 1099 from your host agency.
Don’t let that surprise you as your host should be sending you one every year…but, if it’s your first year in business that 1099 may raise an eyebrow…it did with me.
What is a 1099? We’ve all gotten them before, they should look familiar, but what are they, exactly?
1099 is the title given to a series of documents created by the U.S. Internal Revenue Service (IRS). 1099s are information returns (returns filed with the IRS and others that are for information only) used to report certain types of payments or income to the individuals or organizations receiving those payments.
You’ll receive a 1099 from your host because your received money – hopefully gobs and gobs of it – from your host throughout the year. [Read more...]