1099 Information

What Is Form 1099?

A Form 1099 is issued to taxpayers so they may provide information to the Internal Revenue Service (IRS) about different types of non-employment income received during the tax year. This income may include interest from your bank, dividends from investments, or compensation for freelance work.

Issuers of 1099 forms must send one copy to the IRS and another to the taxpayer, the income recipient.

1099 forms report a taxpayer's non-employment income received throughout the tax year to the Internal Revenue Service (IRS).

• The IRS compares reported income on Form 1040 with the information reported on 1099 forms.
• Financial institutions and small businesses that hire independent contractors complete 1099 forms and send them to their payees.
• Individual taxpayers don’t complete 1099 forms. They complete Form W9.

• While the rules around types of income to report are the same, the IRS has split out Nonemployee Compensation (formerly Box 7 on the 1099-MISC form) into a new form called the 1099-NEC.  This may require you to file two sets of forms if you report other types of misc income other than NEC (rents, royalties, gross proceeds to attorney, etc.).  

• The threshold for Nonemployee Compensation is $600 and does not include payments you have made via credit card or PayPal.  S-Corps do not need to receive 1099s.

• Our pricing is as follows for 1099-MISC and 1099-NEC.  Postage and handling will be added on for paper filings:
  • $100 for 1-2 Recipients
  • $150 for 3-10 Recipients
  • $150 and up for 11+ Recipients

• 1099 Forms have corresponding filing deadlines due to both recipients by January 31st, 2024 regardless of whether filing electronically or by paper.

• W9s for any Recipients (Subcontractors, Contract Labor, Rent, and Law Firms).  Here is a link a W9 form - or please provide Name/Business Name, Address, SS #, or Tax #.  

• If possible, please include email addresses for all Recipients.  We can securely email and this will save you money on postage.