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Forms 1099

Forms 1099


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.

טופס 1099 הינו למעשה דיווח ל-IRS שטיינמץ עמינח

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

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Forms 1099