So back when we started our YouTube channel in 2020, we had a goal of getting to 500 subscribers by June of 2021. Well, while we didn’t get there by June, we’re pleased to say that we reached 500 subscribers on August 5th 2021 thanks to your help!
So…thank you, thank you, thank you so VERY MUCH to everyone for helping us reach more people to help them with understanding their money and achieving their wealth goals. But now, we’ve got a new goal, and that goal is to get to 750 subscribers by December 31st 2021. To do that, we’ve got a really awesome contest that everyone can enter whether they are or aren’t a current subscriber of our channel.
If you’re not subscribed to the channel, all you have to do is just head on over to our channel page. Once there, click the little subscribe button and then make sure you click that little bell icon so it turns grey. That way, you’ll get notifications whenever we upload a new video.
Once you’ve done that, just take a picture or screenshot of your subscription page and shoot it to us via and email by clicking this link. It’s just that simple!
Now if you’re already subscribed, you can still play along and win too. All you have to do is just send an email to some of your closest friends or colleagues inviting them to subscribe to the channel. We put a sample email in the description of this YouTube video to make it really easy for you to just cut paste and send.
Once you’ve sent the email, just either send us a picture of that email or you can actually just BCC us on the email when it goes out. Now don’t worry, we’re not gonna take your friend’s email addresses and spam people or anything like that. ? In the end, you can do whatever your comfortable with. All we need is proof that you’re telling people about the channel.
So what’s the prize? We’ll on Labor Day (9/6/21) we’ll pick 5 lucky winners who will receive a 100% FREE autographed copy of Jared’s book How To Slash Your Taxes Legally and Ethically. Hey, what better way to work on minding your money then by learning how you can save on your taxes for FREE right?
Once again, we thank you all so much for helping us get to our 500 subscriber goal and here’s to us getting to 750 by December 31st.
Many Americans often find themselves broke and living paycheck to paycheck. But why does this happen? Is it because of lack of income/earnings? Is it due to not having certain “higher” level education or degrees like a Bachelor’s or Master’s degree from college? Is it because of certain race, gender, sexual preference or other items which can be discriminated against? Contrary to popular belief, it’s NOT just tied to how much money a person makes.
George Floyd’s Impact, Inspiration and Legacy
In early 2020, because of the tragic murder and death of George Floyd, Americans were forced to confront some realities that some would rather not. His death, on top of many Americans being out of work due to the Covid-19 Pandemic, was just enough to push us into a tailspin of social unrest. The resulting looting, rioting and “every person for themselves” mentality which followed, made one thing clear (if it was to no one other than ourselves). Through no fault of their own, many Americans are only one paycheck away from disaster.
This can be a small disaster like missing a cell phone bill, a cable bill or not having enough to go out and eat at your favorite restaurant. Or it could be a serious disaster like missing a rent or mortgage payment, getting evicted, or having to turn to a food pantry for help.
Our good friend, and client, Ashanti Johnson over at 360 Mind Body Soul here in Chicago, encouraged us to start a video series in connection with a virtual wellness summit that our CEO, Jared Rogers, participated in. Check out this specific point in Episode 10 where Jared shares a snippet of her summit and talks about George Floyd and the resulting motivation to launch the series.
In the end, seeing as we deal with money on a day-in and day-out basis, it only made sense that we should work to share the knowledge we have built up over the years with those who need it the most. So, through a culmination of all of the above, we decided that we had an obligation to do more.
Minding My Money Mondays & Tax Chit Chat
Minding My Money Mondays (#MMMM) was the YouTube series that was directly birthed following the events after Mr. Floyd’s death. In early December, we created a separate series called Tax Chit Chat (#TCC) that is for those looking specifically for just tax tips. All videos will ultimately get rolled into a much larger money management website (hopefully by early H2 of 2021), but in the interim, you can follow both series by subscribing to our YouTube channel. Each series has it’s own playlist and releases videos according to it’s prescribed schedule.
Video Episode Listing
Shown below is a listing of the episodes that were created through the date of this blog post. They go from most recent back to the very first episode. To catch an episode, simply click the title above the video thumbnail and you’ll be taken directly to it within YouTube. It’s our sincere hope that that you:
Enjoy the videos and learn from them
Spread the word on social media via the hashtags #MMMM and #TCC as we really hope to help people “Make My Money Make Sense!”
Eventually join us on the money management website once it’s launched
Send us questions and video suggestions at email@example.com as we hope to help everyone learn how to better manage their money and avoid financial disaster (although NO ONE saw a Covid-19 type event coming).
The information below was originally written when money paid to independent contractors was reported on Form 1099-MISC. As a result of the The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), independent contractor payments are now reported via Form 1099-NEC effective tax year 2020 (being filed in 2021). The deadline for filing remains January 31st.
While most of the information below for Form 1099-MISC applies to Form 1099-NEC and generally is still relevant, please refer to the YouTube video below for instructions on how to complete Form 1099-NEC.
******** Original Post Begins Below **********
If you employ an independent contractor in your trade or business, you are obligated to report their earnings to them and the IRS. This is typically done via the IRS form 1099-MISC. But just who is supposed to receive this form, when is it due and what are the penalties if it’s not filed on time?
Who Receives Form 1099-MISC
Form 1099 goes out to independent contractors if you pay them $600 or more to do work for your company during the tax year. Additionally, those whom you pay at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest should also receive a 1099.
Taxpayers should note that if you earned less than $600 and you don’t get a 1099, this doesn’t mean you don’t have to report the income. All income (it doesn’t matter if it’s $1) is taxable and should/must be reported.
In addition to individuals, you must also send a 1099 to the following if you paid them for doing work:
Businesses that file on form 1040 Schedule C (i.e. sole proprietors/self employed)
Single member LLCs, as they are considered disregarded entities (DREs) and also file on Sch C
Partnerships or Multimember LLCs as they essentially file the same return as a partnership
However, there are some instances in which you don’t need to issue a 1099-MISC. These exceptions include:
Suppliers of merchandise, telegrams, telephone, freight, storage, and similar items, with the exception of those who deal in fish or other aquatic life
Corporations (e.g. those who’s names contain Corporation, Company, Incorporated, Limited, Corp., Co., Inc. or Ltd.) are also exempt from 1099 requirements, with the exception of those you pay for medical or health care, or law firms that you’ve hired for legal services
Those corporations that have filed a S-Corp election with the IRS
Tax-exempt organizations or to American or foreign governments
Need the specifics on who is exempt and who isn’t and don’t mind reading the Internal Revenue Code? Check out section Treasury Regulations, Subchapter A, Sec. 1.6049-4(c)(1)(ii) where it talks about a corporation, as defined in section 7701(a)(3).
When Is Form 1099 Due?
Generally you must furnish a copy of form 1099-MISC to the recipient by January 31st of the year following when the payments were made. If you are reporting payments in boxes 8 or 14, then you have until February 15th of the year following when the payments were made.
In addition to the recipient, you must also send a copy to the IRS (along with Form 1096) by January 31st IF you are reporting amounts in Box 7 for Nonemployee Compensation. If you are reporting amounts in any other box:
You must submit it by February 28th of the year following when the payments were made if you are sending it via paper
If you are submitting everything electronically, then you have until March 31st of the year following payment.
What are the penalties for filing late?
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The amount of the penalty is based on when you file the correct information return. Currently, the penalty is:
$50 per information return if you correctly file within 30 days; maximum penalty $532,000 per year ($186,000 for small businesses)
$100 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $1,596,500 per year ($532,000 for small businesses)
$260 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,193,000 per year ($1,064,000 for small businesses)
Obtaining the information needed to file Form 1099
To ensure that you issue a correct 1099 to the recipient, complete Form W-9, Request for Taxpayer Identification and Certification. The W-9 includes the individual or businesses legal name, tax ID number, address and their signature attesting to the correctness of the content. You will then use this information to create the 1099 and send it to the IRS.
Do you have 1099s that you need to file? Shoot us an email at the address below or give us a call at 773-239-8850. Our filing services are extremely affordable (as low as $10/form) and not only will your documents be filed with the IRS, SSA and state, they can also be mailed to the recipient!