1099 Reporting Requirements For 2021-2022 Tax Season

Here is everything you need to know about the 1099 reporting requirements for the 2021 tax year.

1099 forms play a critical role in reporting the income and expense information of a business. Compensations paid to employees, payments made to independent contractors, fees paid to attorneys, and so on are all recorded throughout the year. These transactions are reported through the 1099 forms to help the IRS match the information and process the tax. 

If you’re self-employed or a business owner, you must know just how chaotic the filing season can be. While filing is just one side of the coin, the preparation, internal audits, reviews, validation and other crucial steps leading up to the filing season can be quite hectic. 

And if you’re sick and tired of looking up the filing information for each of your 1099 forms online, we have some great news for you. 

This blog will take you through the filing requirements for all 1099 forms (in one place), giving you the much-needed quick facts and insights to ease your way into the filing season that’s fast approaching in the New Year. 

So, let’s get to it.

What Are 1099 Forms? 

1099 forms are a series of tax information reporting forms that the IRS refers to as ‘information returns’. These information returns report certain payments and income information of business entities and self-employed individuals to the IRS. The IRS requires the taxpayers to prepare and file the completed 1099 forms by certain due dates.

What Are 1099 Form Types? 

There are a variety of variants to 1099 forms, such as 1099-MISC, 1099-NEC, 1099-DIV, 1099-K, and so on. All of these information returns have a unique purpose in terms of reporting a variety of information to the IRS. 

Fundamentally, the mechanism of all 1099 forms is pretty much the same. All 1099 forms report certain information about the taxpayer to the IRS, giving the forms their “information returns” status. 

The following is a table of 1099 forms along with their information reporting purpose. This will help you understand each of the 1099 forms.

Form	Form Description
1099-A	Acquisition or Abandonment of Secured Property
1099-B	Proceeds From Broker and Barter Exchange Transactions
1099-C	Cancelation of Debt
1099-CAP	Changes in Corporate Control and Capital Structure
1099-DIV	Dividends and Distributions
1099-G	Certain Government Payments
1099-H	Health Coverage Tax Credit (HCTC) Advance Payments
1099-INT	Interest Income
1099-K	Merchant Card and Third-Party Network Payments
1099-LTC	Long-Term Care and Accelerated Death Benefits
1099-MISC	Miscellaneous Income
1099-NEC	Nonemployee Compensation
1099-OID	Original Issue Discount
1099-PATR	Taxable Distributions Received From Cooperatives
1099-Q	Payments From Qualified Education Programs
1099-R	Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
1099-S	Proceeds From Real Estate Transactions
1099-SA	Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
RRB-1099	Railroad Retirement Board Statement
SSA- 1099	Social Security Benefit Statement

Are You Required To File 1099 Forms?

If you have generated an income amounting to $600 or more and/or paid $600 or more to an entity or an independent contractor in exchange for their services, then you’re required to file 1099 forms for the tax year. 

Should You (Payer) Send 1099 Forms to Your Payees?

When a business pays an independent contractor for their services, the transactional information is recorded and reported through 1099 forms.

 The IRS requires the payer (the business) to send a copy of the 1099 forms to the payee (freelancer, independent contractor, and vendor) and have the information validated. Once, the tax information reported in the 1099 forms is mutually agreed upon by both parties, the payer files the returns with the IRS. 

To reiterate; yes. If you have paid your payee $600 or more in a tax year and you’ve reported the same on your 1099 forms, then you must send a copy of the 1099 form to the payee.

What Is The Minimum Reportable Amount For 1099 Forms?

For 1099-NEC, non-employee compensations, the Minimum Amount Reported is $600. However, if you paid your vendors less than $600, you don’t have to send a copy of the 1099-NEC to the payee. But wait! You are still required to report it and file with the IRS. The IRS uses this information to cross-verify the income information of the recipient (payee). 

The following table will give you a good understanding of the Minimum Amount Reported for each of the 1099 forms. 

Form	Form Description	Minimum Amount Reported
1099-A	Acquisition or Abandonment of Secured Property	$10,000
1099-B	Proceeds From Broker and Barter Exchange Transactions	Any Amount
1099-C	Cancelation of Debt	$600
1099-CAP	Changes in Corporate Control and Capital Structure	$100 million
1099-DIV	Dividends and Distributions	$10 ($600 for liquidations)
1099-G	Certain Government Payments	$10
1099-H	Health Coverage Tax Credit (HCTC) Advance Payments	Any amount
1099-INT	Interest Income	$10 ($600 for some business-related interest)
1099-K	Merchant Card and Third Party Network Payments	$20,000
1099-LTC	Long-Term Care and Accelerated Death Benefits	Any amount
1099-MISC	Miscellaneous Income	$600 for non-employee compensation ($10 for royalties and most other sources)
1099-NEC	Nonemployee Compensation	$600 for non-employee compensation ($10 for royalties and most other sources)
1099-OID	Original Issue Discount	$10
1099-PATR	Taxable Distributions Received From Cooperatives	$10
1099-Q	Payments From Qualified Education Programs	Any amount
1099-R	Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.	$10
1099-S	Proceeds From Real Estate Transactions	$600
1099-SA	Distributions From an HSA, Archer MSA, or Medicare Advantage MSA	Any amount
RRB-1099	Railroad Retirement Board Statement	Any amount
SSA- 1099	Social Security Benefit Statement	Any amount

When Are 1099 Forms Due To The IRS?

The IRS requires the taxpayers to file their information returns by a specific date. Due to the re-introduction of Form1099-NEC, the 30-day automatic extension of certain 1099 forms has been removed, accelerating the 1099 filing deadlines. 

The following table will help you understand the 1099 filing due dates by which you are required to submit the 1099 forms to the IRS. 

Form	Form Description	IRS Due Date
1099-A	Acquisition or Abandonment of Secured Property	02/28
1099-B	Proceeds From Broker and Barter Exchange Transactions	02/28
1099-C	Cancelation of Debt	02/28
1099-CAP	Changes in Corporate Control and Capital Structure	02/28
1099-DIV	Dividends and Distributions	02/28
1099-G	Certain Government Payments	02/28
1099-H	Health Coverage Tax Credit (HCTC) Advance Payments	02/28
1099-INT	Interest Income	02/28
1099-K	Merchant Card and Third-Party Network Payments	02/28
1099-LTC	Long-Term Care and Accelerated Death Benefits	02/28
1099-MISC	Miscellaneous Income	02/28
1099-NEC	Nonemployee Compensation	02/28
1099-OID	Original Issue Discount	02/28
1099-PATR	Taxable Distributions Received From Cooperatives	02/28
1099-Q	Payments From Qualified Education Programs	02/28
1099-R	Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.	02/28
1099-S	Proceeds From Real Estate Transactions	02/28
1099-SA	Distributions From an HSA, Archer MSA, or Medicare Advantage MSA	02/28
RRB-1099	Railroad Retirement Board Statement	02/28
SSA- 1099	Social Security Benefit Statement	02/28

When Are 1099 Forms Due To Your Payees/Vendors?

The following table will help you understand the 1099 filing due dates by which you are required to send the 1099 forms to the payee.

Form	Form Description	Payee Due Date
1099-A	Acquisition or Abandonment of Secured Property	01/31
1099-B	Proceeds From Broker and Barter Exchange Transactions	02/15
1099-C	Cancelation of Debt	01/31
1099-CAP	Changes in Corporate Control and Capital Structure	01/31
1099-DIV	Dividends and Distributions	01/31
1099-G	Certain Government Payments	01/31
1099-H	Health Coverage Tax Credit (HCTC) Advance Payments	01/31
1099-INT	Interest Income	01/31
1099-K	Merchant Card and Third-Party Network Payments	01/31
1099-LTC	Long-Term Care and Accelerated Death Benefits	01/31
1099-MISC	Miscellaneous Income	01/31
1099-NEC	Nonemployee Compensation	01/31
1099-OID	Original Issue Discount	01/31
1099-PATR	Taxable Distributions Received From Cooperatives	01/31
1099-Q	Payments From Qualified Education Programs	01/31
1099-R	Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.	01/31
1099-S	Proceeds From Real Estate Transactions	01/31
1099-SA	Distributions From an HSA, Archer MSA, or Medicare Advantage MSA	01/31
RRB-1099	Railroad Retirement Board Statement	01/31
SSA- 1099	Social Security Benefit Statement	01/31

Prepare & File Your 1099 Forms Electronically With Tax1099 

With the paper file restrictions proposed for 1099 forms for the 2021 tax year (to be filed in Jan 2022); businesses are looking for reliable electronic filers like Tax1099 to eFile bulk 1099 forms quickly. 

Tax1099, an authorized agent of the IRS, enables businesses like you to prepare, validate, and file 1099 and other information returns electronically. 

With sleek security features, 12+ real-time data management integrations, real-time TIN Matching,  W-9 Manager, access to 24×7 tax support, Scheduled eFile, and timely reminders, all your tax information reporting needs are met efficiently on one platform. 

Head over to Tax1099 to get started. 

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