1099-NEC Forms Are Due
The due date for the 1099-NEC forms is around the comer, January 31st, 2025.
To Whom Are 1099-NEC Forms Issued?
As a business owner you need to know that not only contractors get 1099 forms. Business entities, like LLCs or partnerships might need to be issued 1099 forms, depending on their tax classification.
That’s why you should obtain a W9 form from your service providers. Click here to see the form.
What Services Are Reported
Repairs, advertising , marketing, accounting, tax preparation, legal services are such services and even rents paid need to be reported, but not on a 1099-NEC forms. Instead rents are reported on a 1099-MISC.
Keep in mind, legal services get reported regardless of the tax classification of the law firm.
This is not an exhaustive list.
Reportable Payments
The payments that are reported are the ones made through means other than credit cards.
E-filing
If you have 10 or more information returns (not only 1099-NEC forms, information returns include all types of 1099s, W-2s, etc.) you must file the 1099 forms electronically. Otherwise, if you file them on paper when you should not have, the IRS will consider the 1099 forms as not filled at all.
You can use QuickBooks online to E-file the 1099 forms, but you need to set up the contractor or company properly in QuickBooks. Under the vendor information make sure to have the “track payments for 1099” box checked and that you have all their information in, like address, social security number or employer identification number.
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Please note that this blog post is for informational purposes only and does not constitute tax, legal or accounting advice.