Quick Answers: A Mini Guide to 1099's
Hello QuickBooks users, and thanks for joining us. As Year-End quickly approaches, we want to ensure you feel confident and prepared to finish the year successfully. This brief guide will walk you through 1099 forms, including when and where you need to file them.
This guide focuses specifically on QuickBooks Online. To help you manage everything, we've broken down the key requirements for a smooth start to the new year.
Is a 1099-NEC required?
U.S. tax law mandates that you file a Form 1099-NEC for any person or entity you paid $600 or more to last year. This applies to contractors, freelancers, vendors, and any other non-employee. You must also file a 1099-NEC for anyone from whom you withheld federal income tax under the backup withholding rules.
*Note that if you previously reported non-employee compensation in Box 7 of Form 1099-MISC, that information must now be reported on the Form 1099-NEC.
The IRS provides specific criteria for classifying workers as employees or contractors. Please consult the IRS for assistance in properly classifying your workers.
When is a 1099-MISC form required?
Under US tax law, you must file a 1099-MISC form for any person or entity to whom you paid $600 or more during the previous tax year.
The payments reported on a 1099-MISC are typically for vendors, attorneys, and other individuals who are not classified as independent contractors (whose payments would be reported on a 1099-NEC).
For specific questions on filing requirements, please consult the IRS.
When do I need to file my 1099 forms?
The tax filing due dates are different for each of these forms.
How do I file my 1099 forms?
There are a few options here. You can file directly with the IRS, or use QuickBooks for a small fee. We'll walk you through creating, and then e-file your 1099 forms for you. We'll automatically exclude payments you don't need to include on your 1099s (like payments you made with credit cards and other electronic payments).
For even more information, you can find extensive details on filing your 1099’s here.