File 1099-MISC Online
Avalara 1099 & W-9 supports the efficient filing of many IRS form types, including the 1099-MISC for miscellaneous income. Get started filing your 1099-MISCs now.
What is a 1099-MISC?
Just like the 1099-NEC, the 1099-MISC is used to report to the IRS compensation paid to either individuals or entities who receive various types of miscellaneous income such as rent payments, prize money, payments to an attorney, etc.
- Purpose: The 1099-MISC is for miscellaneous income that exceeds $600.
- Who Should File: Businesses in the United States should file 1099-MISCs to the IRS.
- How to File: It’s possible for businesses to e-file their 1099-MISCs, which is often recommended over postal mail for the sake of efficiency and accuracy.
When is a 1099-MISC required?
Typically, businesses in the United States are required to file a 1099-MISC with the IRS for each individual or entity to whom they make miscellaneous payments of more than $600 over the course of a tax year.
A business needs to file a 1099-MISC when they offer compensation to an individual or entity for:
- Rental Payments
- Royalties
- Prizes
- Awards
- Payments for Legal Services
- Punitive Damages
- Health Care Payments
- Crop Insurance Proceeds
- Fishing Boat Proceeds
- More
Can I file a 1099-MISC online?
Yes, you can file a 1099-MISC with the IRS on their website or submit it via traditional postal mail. Avalara 1099 & W-9 makes e-filing form 1099-MISC easy and convenient and automatically validate their 1099 recipients’ Taxpayer Identification Numbers (TINs) at the same time as filing to catch errors and reduce the potential for future B-notices.
For step-by-step instructions to e-file, e-deliver, and correct erroneous information in 1099-MISC forms with Avalara 1099 & W-9, watch our video tutorial:
When is the deadline to file a 1099-MISC?
The deadline for a business to e-file form 1099-MISC with the IRS to report miscellaneous income to an individual or entity for the previous year is March 31st. Businesses must also send a copy of the 1099-MISC to their recipient by January 31st to ensure that their income is accounted for in their annual tax filings.
How do I file a 1099-MISC?
The following steps are best practices for filing a 1099-MISC with the IRS:
- Step 1: Obtain a W-9 from an individual or entity who received miscellaneous income, regardless of whether your business expected to pay them more than $600 over the course of the tax year.
- Step 2: Validate that their legal name, address, and Tax ID number in the W-9 are legible and accurate.
- Step 3: Obtain permission from the recipient to receive their 1099-MISC via email in January.
- Step 4: At the end of the tax year, fill out a 1099-MISC with information from the W-9.
- Step 5: Electronically file the 1099-MISC with the IRS before the annual March 31st deadline.
- Step 6: E-deliver copy B of the 1099-MISC to the recipient before the annual January 31st deadline. (Use postal mail for an individual or entity who did not initially opt in to electronic delivery and make sure it is postmarked before January 31st.)
- Step 7: Retain a copy of the 1099-MISC for your business records in a safe and secure repository.
- Step 8: Investigate unique state requirements for additional 1099-MISC filings.
Note: All of these steps for 1099-MISC compliance can be automated using Avalara 1099 & W-9, including the necessary collection of W-9s at the point of onboarding. Learn more!
IRS Form 1099-MISC FAQs
These are some of the most common questions that Avalara receives about the 1099-MISC:
-
How do I know that the 1099-MISC is the correct form to file?
The 1099-MISC is intended for less common types of payments than the 1099-NEC, for instance. To know if the IRS Form 1099-MISC is the correct form to file, a business should consider the type of payments they made to an individual or entity and the total amount they paid.
-
Do I have to file a 1099-MISC with individual states in addition to the IRS?
It depends. Some states participate in the Combined Federal/State Filing Program, which allows a business to file 1099 forms with the IRS, and the IRS then forwards the information to the participating states. If you are using Avalara 1099 & W-9 to e-file a 1099-MISC to the IRS, the application will automatically flag states that require a separate filing.
-
Are there any exceptions to the deadline for sending a copy of the 1099-MISC to its recipients?
If amounts are reported in only boxes 8 or 10 of the 1099-MISC, then the deadline for sending a copy to recipients changes to February 15th for the previous tax year.