If you are a business owner, you may be required to file 1099 forms for payments that you make to certain individuals or entities. Specifically, you are required to file a 1099 form if you made payments of $600 or more to a person or entity during the tax year for:
- Rent
- Services performed by someone who is not your employee (such as a contractor or freelancer)
- Prizes and awards
- Other forms of income, such as commissions or fees
You will need to file a 1099 form for each person or entity that you made payments to. You will also need to provide the recipient with a copy of the form.
If you are required to file 1099 forms, you must do so by January 31st. You will need to use the appropriate form for the type of payment you made. For example, you would use a 1099-NEC for non-employees, a 1099-MISC form to report payment for rent, and a 1099-INT form to report interest payments.
If you are unsure whether you need to file a 1099 form, or if you have questions about the process, please schedule an appointment before January 15th to ensure we can meet the deadline.