The 1099-MISC filing season will soon be upon us. Below you will find general information regarding filing of the forms. Keep in mind, this information relates to the 1099-MISC form only (information on filing other forms (Ex: 1099-B, 1099-Div, etc) can be found here.
One must first obtain the Tax ID number from the recipient of the 1099-MISC. A request for the ID is obtained through the W-9 form.
Specific Filing Instructions (general):
A business must file a 1099-MISC for each person to whom you have paid during 2012:
- $10 or more in royalties
- $600 or more in rents, services (including parts and materials), prizes & awards, other income payments, medical and health care payments, cash payments for fish you purchase from anyone engaged in the trade or business of catching fish.
- $600 or more in gross proceeds to an attorney
Reportable payments are made only in the course of one's business. Personal payments are not reported.
Filing exceptions:
Do not report the following payments made in the course of one's business:
- Generally, payments made to a corporation (see exceptions below).
- Payments for merchandise, telephone, freight, storage, and similar items.
- Payments of rent to real estate agents.
- Wages - report on form W2
Corporation exceptions: report payments made to corporations for:
- Medical & health care
- Fish purchases
- Attorney Fees
For many companies, the 1099-MISC will be used for independent contractors, rents, medical payments, and legal fees to attorneys. Independent contractor payments should include:
- Payments for services
- Payments for any parts, materials, or mileage that was necessary to complete work.
QuickBooks 1099 processing
QuickBooks software makes it easy to process 1099-MISC forms. These steps will help make the process go smoothly:
- All 1099 recipients must be listed in the Vendor Center.
- After obtaining the W-9 from the recipient, enter the TIN for the Vendor. From the Vendor Center, click to edit the individual vendor. Click on the Additional Information tab to enter the TIN. Be sure to click on the box to indicate the recipient is a 1099 Vendor.
- From the Vendor Menu, click on 1099 processing.
- Run a report to see which vendors currently are selected as 1099-MISC recipients
- Make any changes to vendors who should be receiving a 1099 and are not showing up on the report.
- Map the Chart of Accounts to the appropriate box on the 1099 form.
- Run a final report to view the recipients before processing
- Print out 1099s and 1096 for mailing
- If providing paper copies to recipients, one will need to purchase forms at any local office supplies store. QuickBooks software only populates the data on the 1099 forms.
1099-MISC are due to the recipients by 2/28/13. Or, if filing electronically, by 4/1/13. QuickBooks does have an option to file electronically. Contact QuickBooks for more details on efling 1099s.
You can obtain an automatic 30-day extension for filing 1099-MISC by filing Form 8809. It must be received by the IRS before the normal due date of the returns.
