1099s and W-2s
Your business is required to issue 1099s to any non-corporation it paid $600 or more for services rendered last year. You are not required to include amounts paid by credit card. 1099s are also required for all attorneys paid last year regardless of how much they were paid. Copies of form 1099 must be sent to the recipients and the IRS by the last day of January.
Our fee for preparing 1099s is $135.00 plus $15.00 per 1099. If we must calculate 1099 amounts from your QuickBooks, the fee may be higher and you will be provided a quote.
If you would like for us to prepare these forms, please follow the link at the bottom of this page to our information forms and email them to: contact@tacpas.com or fax to Attn: 1099 desk at (480) 948-9530 as soon as possible.
QuickBooks 1099 report instructions
Here’s what you need to know.
There are currently two types of the form with their own specifications. 1099-MISC and 1099-NEC
Form 1099-NEC reports Non-Employee Compensation. Generally, you’re required to file a Form 1099-NEC if you meet all the following conditions:
- You paid someone who’s not your employee
- You paid for services in the course of your trade or business
- You paid an individual, partnership or estate.
- You paid at least $600 to the payee during the year. Electronic payments such as payments by credit card are not required to be reported (Currently payment you made using Zelle must be counted for 1099s) .
Form 1099-MISC reports the miscellaneous income you paid to individuals. Miscellaneous income includes:
- At least $10 in royalties or broker payments
- At least $600 (cash payments only. You do not need to report payments made by credit card. Same rules as above)
- Rent
- Prizes and awards
- Other income payments
- Cash paid from a notional principal contract to an individual, partnership, or estate
- Any fishing boat proceeds
- Medical and health care payments
- Crop insurance proceeds
- Payments to an attorney (in connection with legal services, but not for the attorney’s services i.e., a settlement agreement)
- Nonqualified compensation
Form 1099-NEC is due to both the IRS and to recipients on Jan 31.
Form 1099-MISC is due Feb 28, 2023, if you file on paper, on March 31, 2023, if filing electronically. Statements to recipients are due on Jan 31, 2023.
There are no extensions for either form.
CALIFORNIA BUSINESSES
If you are doing business in California you must also send a copy of the federal 1099-NES to the Franchise Tax Board. This is true even if your contractors are not in California. 1099-Misc do not need to filed with California. For paper filed returns, the due date is February 28. For electronic copies, the due date is March 31.
Form 1098
If you have collected interest from seller financing of any type of real estate (this includes land sales) you are required to issue a 1098 to the payer if you receive $600 or more from the payer during the year.