Learn what 1099 forms there are and how you can prepare for the 2020 tax season.
What is a 1099 form?
IRS Form 1099 is a record that tracks money you paid to a non-employee. There are a few 1099 forms that the IRS uses, but the two you’ll need to know about are the 1099-MISC and the 1099-NEC.
As of the 2020 tax season, there are a few things you need to know between 1099-MISC and 1099-NEC.
Do I need to file a 1099-NEC?
You're required by U.S. tax law to file a Form 1099-NEC for anyone that you paid $600 or more in the previous year. You’ll also need to file a Form 1099-NEC for any person you’ve withheld any federal income tax from under the backup withholding rules.
This can be contractors, freelancers, vendors, or any other non-employee. If you have previously reported any information on Box 7, which is the total amount of non-employee compensation, this information is now reported on the 1099-NEC.
The IRS has rules to decide if a worker is an employee or a contractor. For assistance in classifying your workers, check with the IRS.
Contractors also need a 1099-MISC to file their taxes. If you have more questions about who needs to file, check with the IRS.
Do I need to file a 1099-MISC?
You're required by U.S. tax law to file a 1099-MISC form for anyone that you paid $600 or more in the previous year. Unlike the 1099-NEC, the payments found on a 1099-MISC are geared towards vendors, attorneys, and other individuals who are not a proper contractor.
How do I file my 1099 forms?
There are a couple of options for filing the 2020 version of 1099-MISC and 1099-NEC. For a small fee, we'll walk you through and 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).
|Note: The tax filing due dates are different for each of these forms.
Learn how to e-file your 1099's with:
- QuickBooks Online
- QuickBooks Desktop
- Intuit Online Payroll
- 1099 E-File Service (no QuickBooks or payroll)
If you have Intuit Full Service Payroll, we'll automatically do this for you.
- Your data is safe. When Intuit transmits 1099s via E-file, we comply with all IRS requirements in Publication 1220.
- E-file is only supported for contractors with a U.S. address. You must E-file by specific dates determined by the IRS.
- If you’d like further information about 1099-MISC, download the IRS general instructions for 1099 forms.
Set up a contractor for 1099-MISC
If you have a QuickBooks Payroll product, you’ll need to get your contractors or vendors set up in QuickBooks before you can file their 1099s.
Looking for information on 1099-K forms?
If you have a QuickBooks Payments product and you have processed at least 200 card transactions and $20,000 in gross sales during the previous calendar year, we generate a 1099-K form for you on or before January 31.
Can I create a 1099 for a previous year?
No, if you QuickBooks Online, QuickBooks Desktop or Intuit Online Payroll Enhanced you can only create 1099s for the prior tax year. Note, if you use Tax1099 you may be able to file up to 2 prior tax years without QuickBooks integration.