Filing Your IRS 1099 Forms: What You Need to Know for 2024

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As the year wraps up, it’s time to start preparing your IRS 1099 forms. As a business owner, filing 1099s correctly and on time is a critical part of year-end compliance for your company. Here’s what you need to know to navigate the requirements for Forms 1099-NEC, 1099-MISC, and 1099-K this filing season.

Form 1099-NEC

Form 1099-NEC (Nonemployee Compensation) is used to report payments of $600 or more made to nonemployees such as independent contractors, freelancers, and vendors.

Who needs a 1099-NEC?

You’ll need to file Form 1099-NEC for any contractor or service provider, including attorneys, to whom you paid $600 or more in 2024, unless the service provider is a corporation. An LLC is not necessarily a corporation.  Be sure to collect a Form W-9 from each service provider, regardless of their entity structure, to ensure you have their tax information.  You are required to have a W-9 on file for all service providers.

What’s the filing deadline for 1099-NECs in 2025?

  • Recipient copies must be sent by January 31, 2025.
  • IRS filing must also be submitted by January 31, 2025.

Here are some helpful links for 1099-NECs:

Form 1099-MISC

Form 1099-MISC is used to report miscellaneous income such as rent, prizes and awards, and other types of payments not reported on Form 1099-NEC.

Who needs a 1099-MISC?

File Form 1099-MISC if you’ve paid:

  • $600 or more in rent, prizes, or awards.
  • Royalties of $10 or more.

What’s the filing deadline for 1099-MISC forms in 2025?

  • Recipient copies must be sent by January 31, 2025.
  • IRS filing deadlines:
    • Paper filing: February 28, 2025.
    • Electronic filing: March 31, 2025.

Here are some helpful links for 1099-MISC Forms:

Form 1099-K

Form 1099-K is used to report payment transactions made through third-party settlement organizations like PayPal, Venmo, or Square. For tax year 2024, the IRS requires a Form 1099-K to be issued if:

  • Gross payments exceed $600, regardless of the number of transactions.

Who issues Form 1099-K?

Third-party settlement organizations are responsible for filing Form 1099-K and sending copies to payees. However, ensure you cross-check your records with any 1099-K forms received to verify reported amounts.

What’s the filing deadline for Form 1099-K?

  • Recipient copies must be sent by January 31, 2025.
  • IRS filing deadlines mirror those for Form 1099-MISC.

Helpful Links for Form 1099-K:

Pro Tips for Smooth 1099 Filing

  1. Collect W-9s now. Ensure you have accurate information for all contractors and vendors.
  2. Double-check tax identification numbers (TINs). This prevents filing errors that could result in penalties.
  3. Use accounting software. Most platforms have tools to simplify 1099 preparation and electronic filing.
  4. File electronically if possible. E-filing is faster and ensures timely submission to the IRS.

Need Help? We’re Here for You!

We’re happy to guide our customers through the process, from verifying vendor details to ensuring accurate filings. Let us take the stress out of 1099 compliance so you can focus on your business as we head into the new year.

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