HOW TO FILE YOUR 1099 TAX FORM ELECTRONICALLY
We’re just days into the new year and by this time you are probably wondering why you have this feeling that you’re forgetting something … well we’re here to tell you that it’s probably your 1099 tax form. Yeah, that’s right, we’re talking about taxes in January.
What is a 1099 form and what is it used for?
The 1099 form is a tax form used to report services performed by someone who is not your employee, such as fees for contract work. It reports the total amount of money paid to a person or entity (who is NOT your employee) during the year in which they provided services. The payer is typically responsible for generating and sending copies of the 1099 form to both the service provider as well as the IRS. If you’re reading this article, you are likely the payer and therefore have responsibilities looming in your near future – the deadlines for submitting this form is fast approaching!
Why you don’t need to stress!
The good news is that you don’t need to sweat, stress or panic. Why? Because database driven property management software such as MRI and Yardi can process your 1099 forms in a few easy steps, making this otherwise time-consuming task a breeze.
How to file your 1099 tax forms
As it is true with many things in life, the more organized you are, the more you benefit in the long run (even in ways you may not have even considered). Having an organized way of tracking your expenses will further help simplify the process of reviewing and submitting your taxes. So how do you prepare the 1099s you ask? Below are 3 simple steps to follow:
Step 1 – Ensure your software is updated with the correct information for all your vendors and contractors. You would already have a completed W-9 form for each vendor (which includes their name, address, Tax ID/SSN/EIN as well as their tax filing status) so you can check to see which vendors you need to issue a 1099 form for.
Step 2 – Update your payer records in your software. If you use MRI, you must update the 1099 Payers Table. Otherwise if you use Yardi, ensure that your owner, bank account vendor, and management company records are up to date. Don’t know where to start with this in MRI or Yardi? This is where we’re the experts. Contact us at sales@assetsoft.biz and let’s start the conversation about how we can help walk you through, train and complete the steps required to submit this form.
Step 3 – It’s time for data extraction and content verification. Sounds complicated, but when you have software like MRI or Yardi, it’s a matter of downloading your records and uploading them to the IRS. That’s it!
Important 1099 deadlines
Form | Sending 1099 to Recipient | Filing to the IRS By Mail | E-Filing to the IRS |
1099-MISC (NEC Only) | January 31, 2020 | January 31, 2020 | January 31, 2020 |
1099-MISC (Other Forms) | January 31, 2020 | February 28, 2020 | March 31, 2020 |
You can breeze through tax season by following these simple steps. As long-time MRI and Yardi consultants, we strive to help our clients leverage new solutions, automate processes and take the weight off your shoulders. Reach out to us today at sales@assetsoft.biz for all your 1099 questions, and any of your MRI or Yardi needs. At Assetsoft, we have a robust team of industry, technical and functional experts who have years of experience developing real solutions for your real property needs.