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| Free 1099 tax form service |
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If you opt into the free 1099 tax form service, Guru.com will issue 1099 tax forms every January on your behalf to the IRS and to qualifying Freelancers who you have paid more than $600 during the previous tax year.
Guru.com collects W-9 forms from Freelancers so you will not have to worry about verifying the tax IDs of the Freelancers you hire. And, you will receive a payment report that identifies the 1099 tax forms issued on your behalf.
 Qualifying for the 1099 service
Opting into or declining the 1099 service
What if I paid my Freelancer $600 or less?
What if I paid a Freelancer who is incorporated?
1099 status displayed on invoices
Qualifying for the 1099 service
- You must reside in the U.S.
- You must pay Freelancers via SafePay Escrow or Invoicing.
- Only U.S. Freelancers whom you pay more than $600 in a single tax year will require 1099s.
- Only Freelancers who are independent contractors (not incorporated businesses) will require 1099s.
- There is no charge for this service for you or for your Freelancers.
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Opting into or declining the 1099 service
You can opt into or decline the 1099 service when you register your account or at any time by modifying your account information.
During registration:
- Click "Register" on the top navigation bar.
- On the Who Are You? page, click "Register as an Employer."
- Complete all of the required information in the Registration form.
- In the 1099 Tax Service section, select "Yes" (or "No" to decline).
- Click "Submit."
Modifying an existing account:
- Go to the My Admin page.
- Click "Modify Account" in the Manage Your Account section.
- In the 1099 Tax Service section, select "Yes" (or "No" to decline).
- Click "Submit."
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What if I paid my Freelancer $600 or less?
Consider opting into the 1099 tax form service even if you do not pay a Freelancer more than $600. You may hire the Freelancer again and end up paying more than $600 in one calendar year. (Employers are liable to issue a 1099 tax form if they pay a Freelancer more than $600 within one calendar year.)
If you opt into the 1099 service, Guru.com collects signed W-9 forms from Freelancers you pay regardless of the invoice amounts. However, the 1099 form only gets issued to a Freelancer and the IRS if you pay more than $600 within the calendar year.
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What if I paid a Freelancer who is incorporated?
Consider opting into the 1099 tax form service even if a Freelancer claims that his or her business is incorporated. If, by chance, the Freelancer is not incorporated, you are liable to issue a 1099 tax form.
If you opt into the 1099 service, Guru.com collects signed W-9 forms from both individual Freelancers and corporations. However, the 1099 form only gets issued to a Freelancer and the IRS if the Freelancer provided an Employer Identification Number (EIN) on the W-9 form.
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1099 status displayed on invoices
- 1099 Service Applied: Yes
You chose to participate in the free 1099 tax form service for this Invoice. If appropriate, Guru.com will issue a 1099 tax form for this Freelancer on your behalf. If you do not want to use the 1099 tax form service, please contact us.
- 1099 Service Applied: No
You did not choose to participate in the free 1099 tax form service for this Invoice. If you would like Guru.com to issue a 1099 tax form to this Freelancer on your behalf, please contact us.
- 1099 Service Applied: Does Not Apply
The Freelancer lives outside of the United States. Therefore, the IRS does not require a 1099 form to be issued to the Freelancer.
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| About the IRS 1099 tax form |
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The 1099-Miscellaneous Income Form (1099-MISC), is the tax form sent to independent contractors who have earned more than $600 the previous year. It is the freelance equivalent of the W-2 form, which is sent to employees. To generate a 1099 form, independent contractors must complete and submit a W-9 tax form to the issuing agency.
1099 forms contain the following information:
- Freelancer's name and address
- Freelancer's social security or tax ID number
- Payer's name, address, and telephone number
- Payer's federal ID number (EIN)
- Amount of non-employee compensation
 Read a related article:
When Employers are liable for submitting a 1099 tax form
If an Employer pays an independent contractor more than $600 for services within one calendar year, the IRS requires the Employer to issue a 1099 tax form. 1099 forms are only required for Employers within the U.S. who are hiring Freelancers within the U.S.
IRS penalties for not submitting a 1099 tax form
An Employer may be subject to IRS backup withholding at a 28 percent rate if he or she has paid an independent contractor more than $600 for services within one calendar year and has not issued a completed 1099 tax form. Employers may also incur penalties of up to $50 per incomplete or late tax filing.
The burden of responsibility to issue the 1099 form lies with the Employer, not the Freelancer. The Guru.com 1099 service relieves you of that responsibility for the Freelancers you pay via SafePay.
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