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1099 Reporting Requirements For 2021-2022 Tax Season

Here is everything you need to know about the 1099 reporting requirements for the 2021 tax year.

1099 forms play a critical role in reporting the income and expense information of a business. Compensations paid to employees, payments made to independent contractors, fees paid to attorneys, and so on are all recorded throughout the year. These transactions are reported through the 1099 forms to help the IRS match the information and process the tax. 

If you’re self-employed or a business owner, you must know just how chaotic the filing season can be. While filing is just one side of the coin, the preparation, internal audits, reviews, validation and other crucial steps leading up to the filing season can be quite hectic. 

And if you’re sick and tired of looking up the filing information for each of your 1099 forms online, we have some great news for you. 

This blog will take you through the filing requirements for all 1099 forms (in one place), giving you the much-needed quick facts and insights to ease your way into the filing season that’s fast approaching in the New Year. 

So, let’s get to it.

What Are 1099 Forms? 

1099 forms are a series of tax information reporting forms that the IRS refers to as ‘information returns’. These information returns report certain payments and income information of business entities and self-employed individuals to the IRS. The IRS requires the taxpayers to prepare and file the completed 1099 forms by certain due dates.

What Are 1099 Form Types? 

There are a variety of variants to 1099 forms, such as 1099-MISC, 1099-NEC, 1099-DIV, 1099-K, and so on. All of these information returns have a unique purpose in terms of reporting a variety of information to the IRS. 

Fundamentally, the mechanism of all 1099 forms is pretty much the same. All 1099 forms report certain information about the taxpayer to the IRS, giving the forms their “information returns” status. 

The following is a table of 1099 forms along with their information reporting purpose. This will help you understand each of the 1099 forms.

FormForm Description
1099-AAcquisition or Abandonment of Secured Property
1099-BProceeds From Broker and Barter Exchange Transactions
1099-CCancelation of Debt
1099-CAPChanges in Corporate Control and Capital Structure
1099-DIVDividends and Distributions
1099-GCertain Government Payments
1099-HHealth Coverage Tax Credit (HCTC) Advance Payments
1099-INTInterest Income
1099-KMerchant Card and Third-Party Network Payments
1099-LTCLong-Term Care and Accelerated Death Benefits
1099-MISCMiscellaneous Income
1099-NECNonemployee Compensation
1099-OIDOriginal Issue Discount
1099-PATRTaxable Distributions Received From Cooperatives
1099-QPayments From Qualified Education Programs
1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
1099-SProceeds From Real Estate Transactions
1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSA
RRB-1099Railroad Retirement Board Statement
SSA- 1099Social Security Benefit Statement

Are You Required To File 1099 Forms?

If you have generated an income amounting to $600 or more and/or paid $600 or more to an entity or an independent contractor in exchange for their services, then you’re required to file 1099 forms for the tax year. 

Should You (Payer) Send 1099 Forms to Your Payees?

When a business pays an independent contractor for their services, the transactional information is recorded and reported through 1099 forms.

 The IRS requires the payer (the business) to send a copy of the 1099 forms to the payee (freelancer, independent contractor, and vendor) and have the information validated. Once, the tax information reported in the 1099 forms is mutually agreed upon by both parties, the payer files the returns with the IRS. 

To reiterate; yes. If you have paid your payee $600 or more in a tax year and you’ve reported the same on your 1099 forms, then you must send a copy of the 1099 form to the payee.

What Is The Minimum Reportable Amount For 1099 Forms?

For 1099-NEC, non-employee compensations, the Minimum Amount Reported is $600. However, if you paid your vendors less than $600, you don’t have to send a copy of the 1099-NEC to the payee. But wait! You are still required to report it and file with the IRS. The IRS uses this information to cross-verify the income information of the recipient (payee). 

The following table will give you a good understanding of the Minimum Amount Reported for each of the 1099 forms. 

FormForm DescriptionMinimum Amount Reported
1099-AAcquisition or Abandonment of Secured Property$10,000
1099-BProceeds From Broker and Barter Exchange TransactionsAny Amount
1099-CCancelation of Debt$600
1099-CAPChanges in Corporate Control and Capital Structure$100 million
1099-DIVDividends and Distributions$10 ($600 for liquidations)
1099-GCertain Government Payments$10
1099-HHealth Coverage Tax Credit (HCTC) Advance PaymentsAny amount
1099-INTInterest Income$10 ($600 for some business-related interest)
1099-KMerchant Card and Third Party Network Payments$20,000
1099-LTCLong-Term Care and Accelerated Death BenefitsAny amount
1099-MISCMiscellaneous Income$600 for non-employee compensation
($10 for royalties and most other sources)
1099-NECNonemployee Compensation$600 for non-employee compensation
($10 for royalties and most other sources)
1099-OIDOriginal Issue Discount$10
1099-PATRTaxable Distributions Received From Cooperatives$10
1099-QPayments From Qualified Education ProgramsAny amount
1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.$10
1099-SProceeds From Real Estate Transactions$600
1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSAAny amount
RRB-1099Railroad Retirement Board StatementAny amount
SSA- 1099Social Security Benefit StatementAny amount

When Are 1099 Forms Due To The IRS?

The IRS requires the taxpayers to file their information returns by a specific date. Due to the re-introduction of Form1099-NEC, the 30-day automatic extension of certain 1099 forms has been removed, accelerating the 1099 filing deadlines. 

The following table will help you understand the 1099 filing due dates by which you are required to submit the 1099 forms to the IRS

FormForm DescriptionIRS Due Date
1099-AAcquisition or Abandonment of Secured Property02/28
1099-BProceeds From Broker and Barter Exchange Transactions02/28
1099-CCancelation of Debt02/28
1099-CAPChanges in Corporate Control and Capital Structure02/28
1099-DIVDividends and Distributions02/28
1099-GCertain Government Payments02/28
1099-HHealth Coverage Tax Credit (HCTC) Advance Payments02/28
1099-INTInterest Income02/28
1099-KMerchant Card and Third-Party Network Payments02/28
1099-LTCLong-Term Care and Accelerated Death Benefits02/28
1099-MISCMiscellaneous Income02/28
1099-NECNonemployee Compensation02/28
1099-OIDOriginal Issue Discount02/28
1099-PATRTaxable Distributions Received From Cooperatives02/28
1099-QPayments From Qualified Education Programs02/28
1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.02/28
1099-SProceeds From Real Estate Transactions02/28
1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSA02/28
RRB-1099Railroad Retirement Board Statement02/28
SSA- 1099Social Security Benefit Statement02/28

When Are 1099 Forms Due To Your Payees/Vendors?

The following table will help you understand the 1099 filing due dates by which you are required to send the 1099 forms to the payee.

FormForm DescriptionPayee Due Date
1099-AAcquisition or Abandonment of Secured Property01/31
1099-BProceeds From Broker and Barter Exchange Transactions02/15
1099-CCancelation of Debt01/31
1099-CAPChanges in Corporate Control and Capital Structure01/31
1099-DIVDividends and Distributions01/31
1099-GCertain Government Payments01/31
1099-HHealth Coverage Tax Credit (HCTC) Advance Payments01/31
1099-INTInterest Income01/31
1099-KMerchant Card and Third-Party Network Payments01/31
1099-LTCLong-Term Care and Accelerated Death Benefits01/31
1099-MISCMiscellaneous Income01/31
1099-NECNonemployee Compensation01/31
1099-OIDOriginal Issue Discount01/31
1099-PATRTaxable Distributions Received From Cooperatives01/31
1099-QPayments From Qualified Education Programs01/31
1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.01/31
1099-SProceeds From Real Estate Transactions01/31
1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSA01/31
RRB-1099Railroad Retirement Board Statement01/31
SSA- 1099Social Security Benefit Statement01/31

Prepare & File Your 1099 Forms Electronically With Tax1099 

With the paper file restrictions proposed for 1099 forms for the 2021 tax year (to be filed in Jan 2022); businesses are looking for reliable electronic filers like Tax1099 to eFile bulk 1099 forms quickly

Tax1099, an authorized agent of the IRS, enables businesses like you to prepare, validate, and file 1099 and other information returns electronically. 

With sleek security features, 12+ real-time data management integrations, real-time TIN MatchingW-9 Manager, access to 24×7 tax support, Scheduled eFile, and timely reminders, all your tax information reporting needs are met efficiently on one platform. 

Head over to Tax1099 to get started. 

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