{"id":243,"date":"2019-07-31T13:19:39","date_gmt":"2019-07-31T13:19:39","guid":{"rendered":"https:\/\/www.etax1099.com\/blog\/?p=243"},"modified":"2019-10-17T09:29:10","modified_gmt":"2019-10-17T09:29:10","slug":"requirements-for-properly-completed-irs-1099-forms","status":"publish","type":"post","link":"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/","title":{"rendered":"Requirements for Properly Completed IRS 1099 Forms"},"content":{"rendered":"<p><span style=\"font-family: verdana, geneva, sans-serif;\">Before filling your forms to the IRS, as a tax filer, you must know the basic requirements for completing the forms. So that you will minimize your errors and you are limiting re-filing. IRS 1099 form consists of varieties of forms that are used to report your income. But, in this blog, we are going to understand what are all the required information you need to collect before filing.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Before jumping into the requirements section, let us throw some light on Form 1099.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/#What_Is_a_Form_1099\" >What Is a Form 1099?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/#Form_1099_Vs_W-2\" >Form 1099 Vs W-2?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/#Form_1099_Types_Requirements_and_their_Due_Dates\" >Form 1099 Types, Requirements, and their Due Dates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/#Do_you_need_to_Report_1099_payment_even_though_you_did_not_receive_a_1099_Form\" >Do you need to Report 1099 payment\u00a0even though you did not receive a 1099 Form?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/requirements-for-properly-completed-irs-1099-forms\/#If_you_do_not_receive_a_Form_1099_on_Time\" >If you do not receive a Form 1099 on Time?<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2><span class=\"ez-toc-section\" id=\"What_Is_a_Form_1099\"><\/span><span style=\"font-family: verdana, geneva, sans-serif;\">What Is a Form 1099?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Form 1099 is generally an information return. You will receive this form 1099 through your mail when you incur income from your employer or the person whom you worked for during the tax year. If you have provided your services to multiple clients and received a minimum payment of $ 600 then you can expect a form 1099. You need to report the information on your income in the 1099 tax return form.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Form_1099_Vs_W-2\"><\/span><span style=\"font-family: verdana, geneva, sans-serif;\">Form 1099 Vs W-2?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Few of them are confused between Form 1099 and W2. To clear that, a W 2 reports the tips, salaries, and wages, while the form 1099 reports all other kinds of income. IRS 1099 form consists of various types and each of the forms is used to report specific and different types of income.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Form_1099_Types_Requirements_and_their_Due_Dates\"><\/span><span style=\"font-family: verdana, geneva, sans-serif;\">Form 1099 Types, Requirements, and their Due Dates:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">The below table consists of each type of 1099 form by their number, description, requirements and the due date to receive the 1099 form. Check the table for clear understanding:<\/span><\/p>\n<table width=\"104%\">\n<thead>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>1099 Form<\/strong><\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Form Description<\/strong><\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Minimum Amount Reported*<\/strong><\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>1099 Form \u00a0Receive It by Date<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-A<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Acquisition or Abandonment of Secured Property<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-B<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Proceeds From Broker and Barter Exchange Transactions<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">15 th February<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-C<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Cancelation of Debt<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 600<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-CAP<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Changes in Corporate Control and Capital Structure<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 100 million<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-DIV<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Dividends and Distributions<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 10 ($ 600 for liquidations)<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-G<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Certain Government Payments<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 10<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-H<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Health Coverage Tax Credit (HCTC) Advance Payments<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-INT<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Interest Income<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Required to report interest payments of $ 10 or more by the financial entities; $ 600 or more by your business or trade<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-K<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Merchant Card and Third-Party Network Payments<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 20,000<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-LTC<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Long-Term Care and Accelerated Death Benefits<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-MISC<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Miscellaneous Income<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Required to report miscellaneous payments of $ 600 or more; $10 or more for royalties.<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-OID<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Original Issue Discount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 10<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-PATR<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Taxable Distributions Received From Cooperatives<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 10<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-Q<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Payments From Qualified Education Programs<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-R<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 10<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-S<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Proceeds From Real Estate Transactions<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">$ 600<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">1099-SA<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Distributions From an HSA, Archer MSA, or Medicare Advantage MSA<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">RRB-1099<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Railroad Retirement Board Statement<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"13%\"><span style=\"font-family: verdana, geneva, sans-serif;\">SSA- 1099<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">Social Security Benefit Statement<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">No minimum amount. Any amount<\/span><\/td>\n<td><span style=\"font-family: verdana, geneva, sans-serif;\">31st January<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Apart from those 1099 forms, the most commonly used forms are form 1099 MISC. So let us have a detailed look into Form 1099 MISC reporting requirements.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>\u00a0Form 1099 MISC Reporting Requirements:<\/strong><\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Generally, you need to send 1099 MISC if you have done the payment to a non-employee of about $ 600 or more during the tax year. Apart from that, there are some other requirements based on the type of payment and the bond between the payer and payee. According to the IRS, Form 1099 MISC is needed if you have done the following types of payments:<\/span><\/p>\n<ol>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Attorney Fees: <\/strong>Payments to the attorney for the activities related to legal settlements must be reported in the Box 14. Apart from that for other legal services that are directly given to a company then the fees to the attorney comes under box 7.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Awards and Prizes: <\/strong>This is applicable to all the general awards and contest winners that you awarded through your business. The winners also need to pay the taxes for their prizes. Box 7 is for the prizes awarded to non-employees as a reward for their services. But Box 3 is not for services performed.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Healthcare and Medical payments: <\/strong>You need to report the payments that you have done to the doctors or providers of any medical services. For instance the payments for physical examinations, hospital charges\/ fees, lab work. Here the tax-exempt hospital payments are not reportable. You can report the payments that you made to the profit hospitals.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Other Payments that contribute to your income: <\/strong>Income that comes under this category is reported in box 3.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Rents: <\/strong>Here, in this case, you can report the rental payments if your business rents real estate, cars or property.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Royalties: <\/strong>Royalty payment is applicable to an author, for the right to publish or distribute the author&#8217;s work. The royalties are at least $ 10.<\/span><\/li>\n<li><span style=\"font-family: verdana, geneva, sans-serif;\"><strong>Services received from your non-employee: <\/strong>These services include the fees paid to the accountants, attorneys, engineers, speakers, directors, etc; marketing services, landscaping services, installation services; repairing equipment, office machines, etc. This box is called as non-employee compensation, which is Box 7.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Do_you_need_to_Report_1099_payment_even_though_you_did_not_receive_a_1099_Form\"><\/span><span style=\"font-family: verdana, geneva, sans-serif;\">Do you need to Report 1099 payment\u00a0even though you did not receive a 1099 Form?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">IRS regards every 1099 payment as taxable income, and you are responsible to report the 1099 payment on your tax return.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">For instance, if you have earned less than $ 600 by providing your service to various clients, then the client will never send you Form 1099 as the payment amount is less than $ 600 as an independent contractor. But you need to file report the income that you earned as a self-employed service<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"If_you_do_not_receive_a_Form_1099_on_Time\"><\/span><span style=\"font-family: verdana, geneva, sans-serif;\">If you do not receive a Form 1099 on Time?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">When you are expecting a Form 1099 from your employer and you do not receive the form by 15the February, then IRS suggests to contact them at 1 800 829 1040, where you will be able to make use of the substitute form to report your return and you can e-file them.<\/span><\/p>\n<p><span style=\"font-family: verdana, geneva, sans-serif;\">Hope this article gave a clear picture of the requirements for IRS 1099 Forms. For further assistance and Clarifications, you are just a call away from us to reach our customer support team at 703-229- 0326 or drop a mail at <a href=\"mailto:support@tax2efile.com\">support@tax2efile.com<\/a>. We are happy to assist and serve you at any time.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before filling your forms to the IRS, as a tax filer, you must know the basic requirements for completing the forms. So that you will minimize your errors and you are limiting re-filing. IRS 1099 form consists of varieties of forms that are used to report your income. But, in this blog, we are going [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":94,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[],"class_list":["post-243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-file-1099"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/comments?post=243"}],"version-history":[{"count":0,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media\/94"}],"wp:attachment":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media?parent=243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/categories?post=243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/tags?post=243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}