1099-MISCs are forms used to report rent (unless paid to real estate agent or property manager) and/or legal fees paid above $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 real estate-related company, you do not need to file a 1099-MISC.
How does the IRS use 1099-MISCs?
The IRS will total reported revenue on all the 1099 forms received under a taxpayer/business' Tax Identification Number. It's a way for the IRS to have a general idea of how much money a person should be reporting 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 leasee.
- If you work with insurance providers, you should expect a 1099-MISC from each provider.
You should upload the 1099-MISC (and any 1099 and other tax documents received) to the Tax-Related Documents section. You can access this by going to Your Business > Documents > Tax-Related Documents 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
The online option we suggest is Track1099 because it is fast, the most affordable price and accessible.
How to fill the form(s) out:
- Enter your business' 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.