Forms 1099-NEC & 1099-MISC
DUE JANUARY 31ST
Forms 1099-NEC & 1099-MISC are required to be issued by businesses, farmers, non-profit organizations and landlords that pay independent contractors, landlords or law firms over $600 for services or rents (not goods or merchandise) to any single provider in the past year.
I suggest having service providers or landlords complete a Form W-9 prior to your paying the service providers or landlords. The Form W-9 is the formal way to request service providers or landlords tax information. The Form W-9 once completed is not filed with the IRS but rather retained for when you will prepare the annual Forms 1099.
The 1099-NEC is used to report payments over $600 for services paid to independent contractors.
The 1099-MISC is commonly used to report payments over $600 for rents & payments over $600 to attorneys or law firms (regardless of whether the attorney or law firm was incorporated).
Forms 1099-NEC & 1099-MISC are due to the IRS by January 31st .
Forms 1099-NEC are also due to California by February 28th (in recent years 1099's were not required to be filed separately to CA). Please see here for more information on the California filing.
If you would like my help in preparing these forms please complete the spreadsheet at the "1099 Information Sheet" button link below and return to me via my client portal (please request a link to my portal and I will send it to you). I have also included an example of a completed spreadsheet.
If preparing yourself, Forms 1099-NEC & 1099-MISC can be purchased at most office supply stores. They can also be completed and filed electronically using providers online. I suggest www.efilemyforms.com for filing online.
Here's a link to the IRS's page on 1099-NEC & 1099-MISC - https://www.irs.gov/uac/about-form-1099misc
Please note that payments that you made to corporations are excluded from 1099 requirement with the exception of corporations that provide legal services.
Please also note that payments that individuals made related to their principal residence or personal property do not need to prepare or file 1099-NEC & 1099-MISC .