Many professional truck drivers choose to contract their services to carriers and fleets. 1099 is a tax form that allows the IRS to track any payment given by a company to independent contractors for their services.
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Where’s Your Form 1099-NEC?
Form 1099-NEC reports non-employee compensation for tax filing year 2021 and must be issued to all independent contractors by January 31, 2022. This puts the responsibility on the carrier or fleet to provide the form to its contractors. Even if you do not receive your 1099, you will still need to report the income on your tax return.
Tracking Down Form 1099
If you have trouble tracking down this form, there are several things you can do.
- First, you can give the fleet or carrier a call. Typically, the group that handles your paycheck every week or month will issue you your 1099. Be sure to track this information down at the beginning of February so you are ready to submit your forms and paperwork to your tax professional.
- Second, you can ask the IRS for older 1099s, and they can typically supply this documentation for the past ten years. To make this request, you will need to complete Form 4506-T. The good news is that this service is free.
- Lastly, as a last resort, you can estimate your 1099-NEC income. Do so by reviewing your end-of-year pay stubs issued by your fleet or carrier. A simple amendment process is available if you overestimate your payment. Remember, the IRS does not like it when you underestimate earnings and may impose penalties for doing so.
Notice: If you are a corporation, there is a possibility that you will not receive a 1099-NEC; speak with your carrier if that is the case. The IRS exempts corporations from receiving the 1099 form because these entities are already subject to strict state and federal reporting and administrative requirements.
Issuing Your 1099
Some independent contractors will pay others to help them run their businesses. If you paid someone more than $600 in 2021, you would need to file a 1099 for that person and send a copy of this to the IRS by February 28, 2022 (or March 31, 2022, if you file electronically).
A good bookkeeping practice to adhere to is to file a signed and completed W-9 for each contractor you hire, which provides the information you need for filing Form 1099 with your contractor and the IRS.
Get Organized
Form 1099 is an essential element in every independent contractor’s business. Begin gathering your tax documents in January and ensure that your paperwork is ready for your tax professional in February.
