1099 Season is Here!
Who needs a rush after the holiday rush? Aren't we all tired enough and wanting to hibernate? Why the heck are 1099's due on January 31st?!?
If you are an Accountant or Bookkeeper, you may be familiar with the rush to:
- close out your client's books for the prior year
- figure out who all needs to get a 1099, and
- process all the 1099's!
Why not lighten the mood during this time, or thank your Accountant for processing all those 1099's, by sipping your preferred caffeinated drink from this Party Like It's 1999 1099 mug!
If you're not an Accountant...
A 1099 is a form that is sent to the IRS and to the payee, by businesses that pay any unincorporated business (or sole proprietor, which is also a business, but just reported on tax returns under the individual's name) any money in the prior year.
This is only required if the payments totaled $600 or more. It is voluntary if they were under $600.
The deadline to send 1099's is January 31st.
There are many different types of 1099's, too many to explain here! But, the most common is 1099-NEC, which reports non-employee compensation. This form replaced the 1099-MISC, which still exists, but now only reports rent, a prize on a game show, royalties from a song you wrote or money an attorney sent you.
Whew!