How to Create 1099 Forms

Forms 1099 are provided to contractors and individuals who earn non-wage revenue.

Forms 1099 are provided to contractors and individuals who earn non-wage revenue. Many accounting and tax preparation applications walk you through the process to prepare Forms 1099 and 1096, the information form that goes with a 1099. Forms 1099 also are available through the Internal Revenue Service if you need to fill them out by hand. To prepare 1099s for contractors, make sure you have their contact and personal information (which they would have submitted to you on a W-9 form when you hired them), along with documentation of payment (invoices or check stubs for service).

Things You'll Need

• Documentation (W-9, invoices)

Instructions

1. Select "1099 Reporter" in your accounting application or in your tax preparation software to launch the PC wizard.

2. Type the following information in the fields: your name; company name and mailing address; your Social Security or tax ID number; contractor or company name (recipient); recipient's mailing address; recipient's Social Security or tax ID number. If the software automatically populates this information, check it against your documentation (for example, the W-9 may have a company name or a different mailing address).

3. Calculate the total amount paid to the contractor and type this in Box 7 (non-employee compensation). The wizard will walk you through any other payments or withholding amounts you issued for the contractor, such as state and federal taxes. Accounting software will calculate the total amount paid for contractors according to the entries in the electronic ledger.

4. Print the form and instructions for mailing. The 1099 Reporter will generate the necessary 1096 information return for the IRS, along with copies to submit to your contractor and file with your taxes.

Tips & Warnings

• Check all payment amounts and information against backup documentation to avoid sending revised forms later.

• The Internal Revenue Service specifies deadlines for filing information returns and Forms 1099 to contractors. Plan enough time to prepare the forms, get any backup documentation and mail the documents.

References

• IRS.gov: Information returns
• TurboTax 1099 Quick Employer Forms
• QuickBooks Support: Setting up QuickBooks for Reporting Payments on Form 1099-MISC and 1096

Resources

• Read this Article in Spanish
• IRS.gov: Online Ordering for Information Returns and Employer Returns