(1099-MISC/NEC/INT/DIV)
Reporting requirement for certain payments
If you made payments in the course of your trade or business – you might need to report them on forms 1099.
Conditions that require the 1099 reporting:
- Payer: any U.S. taxpayers (corporations, partnerships, individuals) and nonresident aliens (filing 1040NR tax returns)
- Recipient: any U.S. individual, partnership, LLC (partnership), lawyer or law firm
- Amount: over $600
- The payment was for:
- Rents, services (including parts and materials), attorney fees or other income payments (1099-MISC or 1099-NEC)
- Paid at least $10 in Interest or Royalty payments (1099-INT)
- Payments of dividends to US citizens/residents (1099-DIV)
Do not file form 1099 for:
- Payment made to Corporations (including LLCs taxed as a corporation)
- Payments made by credit card or via PayPal
- Payments for merchandise, telegrams, telephone, freight, storage, and similar items
- Payments of rent to real estate agents or property managers
- Wages paid to employees (report on Form W-2, Wage and Tax Statement)
- Personal Payments (not in the course of your trade or business)
When to file form 1099:
- All vendors, independent contractors and service providers must receive Form 1099 from you by January 31
- Copy A of Form 1099 together with Form 1096 must be filed with the IRS by January 31
- Create a list of all your vendors, contractors and other payment recipients
- The list should indicate all necessary information needed to prepare the 1099 form: legal name, address and taxpayer identification number
