Most employers know about required payroll tax forms such as the federal quarterly Form 941s and annual 940. Plus, of course, the W-2s that are given to employees, with a copy sent to the IRS and state. And you likely have state payroll tax forms to file as well.
If a business owner misses a deadline, it’s usually because they’ve forgotten to prepare and file Form 1099s. Plus, real estate investors are highly urged to prepare and file Form 1099s. You’ll lose some important deductions if you miss it.
Keep all your deductions by staying in compliance with the rules for Form 1099s.
In today’s blog, we’re going to look at the most common Form 1099s that you may have to prepare and what the thresholds are for reporting.
Form 1099s Defined
Form 1099s are tax info forms that the IRS refers to as information returns. They report certain payments to individual taxpayers. Here is a list of common Form 1099s. Obviously most business owners won’t file many of them. But you could receive them. It’s helpful to know what it means and what you should do with them. Following is a list showing the Form number, the title of the form and the threshold for reporting. If the amount received by a recipient is less than the amount shown, the form is not required.
1099-A, Acquisition or Abandonment of Secured Property, $10,000
1099-B, Proceeds from Broker & Barter, No minimum
1099-C, Cancellation of Debt, $600
1099-CAP, Changes in Corporate Control & Structure, $100 million
1099-DIV, Dividends & Distributions, $10 ($600 for liquidations)
1099-G, Certain Govt Payments, $10
1099-H, Health Coverage Tax Credit advance, No minimum
1099-INT, Interest income, $10
1099-K, Merchant Card & 3rd Party Network, $20K (2021), $600 (2022)
1099-LTC, Long-Term Care & Accelerated Death Benefits, No minimum
1099-MISC, Miscellaneous income, $600
1099-NEC, Nonemployee comp, $600
1099-OID, Original Issue Discount, $10
1099-PATR, Taxable Dist. from Co-ops,$10
1099-Q, Pymt from Qualified Ed Programs, No minimum
1099-R, Dist. from Pension, Annuity, etc, $10
1099-S, Proceeds from RE transactions, $600
1099-SA, Dist. from HSA & FSA, No minimum
RRB-1099, Railroad Retirement Stmt, No minimum
SSA-1099, Social Security Benefit, No minimum
The forms are due to the payee by 1/31 and to the IRS by 2/28. Check with your state to determine what the deadline for the state is.
Most businesses and real estate investors only need to file Form 1099-MISCs and Form 1099-NECs. If you’re not sure exactly what is your responsibility with filing which forms, talk to your CPA.
Just make sure you prepare them by January 31st!
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