Form 1096 or Annual Summary and Transmittal of U.S. Information Returns is the IRS tax form taxpayers must use for the 2021 tax season to transmit Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G.
This tax form isn’t required if you’re submitting the concerned tax forms electronically. File Form 1096 only if you’re filing a paper information return. You can treat Form 1096 as a cover sheet for mailing information returns to the IRS.
The most common use of Form 1096 is due to Form 1099-MISC. If you’ve paid a freelancer or an independent contractor during the course of the tax year, you must furnish them with a 1099-MISC. If a paper 1099-MISC was filed, you must report this to the IRS with 1096.
File Form 1096 for every type of information return you’ve filed. This is obligatory even if you’ve filed one of each form. To give this a better understanding, if you’ve filed a few Forms 1099 MISC and a 1099-LTC, you must file two copies of Form 1096.
Therefore, the variant of each information also matters. This is why you may want to top for submitting these tax forms electronically.
Form 1096 Instructions to File
Form 1096 is made up of 7 parts. Here is the box by box or line by line instructions:
Enter your name and address on Form 1096 to start filing.
Box 1. Enter your Employer Identification Number (EIN)
Box 2. Enter your Social Security number. If you don’t have an SSN, enter Individual Taxpayer Identification Number instead.
Box 3. Enter the total number of forms included in this Form 1096. For example, if you have a total of five Forms 1099-MISC, enter 5.
Box 4. Enter the total amount of federal income tax withheld from all the information returns.
Box 5. Enter the total amount of income reported with this Form 1096.
Box 6. Enter the type of information return you’re filing.
The above Form 1096 is for the 2020 tax season. As soon as the IRS publishes the 1096 for the 2021 tax year, we will replace it with the appropriate Form 1096.