1099-MISCs are forms used to report rent (unless paid to a real estate agent or property manager) and/or legal fees paid in excess of $600 during the year. This should be filed regardless of how the payments were made (check, credit card, cash app, bank transfer, etc)
If your landlord is a real estate agent, real estate company, property manager, or any sort of real estate-related company, you do not need to file a 1099-MISC.
How does the IRS use 1099-MISCs?
The IRS will total the reported revenue from all 1099 forms received under a taxpayer/business's Tax Identification Number. It's a way for the IRS to get a general idea of how much money a person should report on their tax returns.
What if I received a 1099-MISC?
If you receive a 1099-MISC, it's because someone else paid you rental income or medical and health insurance payments.
- If you sublet an office space or receive rental income during the tax year, you should expect a 1099-MISC from your lease.
- If you work with insurance providers, you can expect to receive a 1099-MISC from each provider.
You should upload the 1099-MISC (and any 1099 and other tax documents received) to the Tax Documents section. You can access this by going to Your Practice > Documents > Taxes and uploading it with the "[Current Tax Year] Document" tag. We will use this during tax return preparation. Here are the official forms and instructions for reference:
Filing a 1099-MISC
IRS E-filing option, Information Returns Intake System (IRIS), which also lets you file and make corrections for Forms 1099. To do so, you need an IRIS Transmitter Control Code (TCC).
How to complete 1099-MISC
- Enter your business's name, address, and Tax Identification Number in the Payer's boxes.
- Using the contractor's W-9, enter the name, address, and Tax Identification Number in the Recipient boxes.
- Enter the total amount paid to the contractor during the year in either Box 1 or Box 10.
- E-file the 1099.
- Once filed, submit "Copy B for Recipient" to the contractor.