Issuing a 1099 or 1096 Form

If you made certain payments to an employee, contractor, or other recipient during the tax year, you may need file a Form 1099 to the IRS and send a copy to the payment's recipient. Additionally, you will need to file a Form 1096, which is used to transmit your paper Form 1099. See the sections below for information on issuing Form 1099 and/or 1096.

1099 Types, Filing Requirements, and Due Dates

When you pay certain individuals for work and services, but do not take them on as an employee, you will generally need to issue them a 1099 summarizing the amounts paid to them. You use this and Form 1096 to report your end of the transactions throughout the year; the recipient then reports this on their own tax returns. Since the IRS has a copy, they are expected to submit the same information shown on the form.

How to Prepare and File Form 1099?

1099 forms are only filed on paper and cannot be e-filed. Follow these steps to prepare and file a Form 1099: 

1. Obtain a blank 1099 form (which is printed on special paper) from the IRS or an office supply store.
2. Fill out the 1099. Each Form 1099 comes with 5 copies, so make sure to write or type on the top copy so it transfers down onto each copy, like carbon paper.
3. Send Copy A to the IRS, Copy 1 to the appropriate state tax agency, Copy B and Copy 2 to the income's recipient (they get two copies so they can attach one to their return and keep one), and keep Copy C for your records.
4. After you have filled out all of your 1099 forms for the year, you need to fill out a Form 1096 as well. Form 1096 summarizes all of your 1099 forms and is filed with the IRS. The mailing address is on the last page of the Form 1096 instructions.

The due dates for these forms to be sent can be found below.

1099 Dollar Amounts, Due Dates

The dollar amount or maximum earnings to issue a 1099 vary based on the type of form. The table below shows the 1099 forms, the types of income reported on each 1099, the minimum income reporting requirements, and due dates to the recipient and IRS.

*This includes contract payments, commissions, reimbursements, awards, and bonuses, rental income, royalties, attorney fees, board of directors fees, medical service fees, proceeds from direct sales of consumer products for resale, crop insurance proceeds, payments to fishing boat crew members, Indian gaming profits paid to tribal members, punitive damages awarded in court, "golden parachutes", substitute dividends and tax-exempt interest payments, income from an NQDC (nonqualified deferred compensation plan) under Section 409A.

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Related Form 1099 Tax Topics:

• How Do You Prepare and File a Tax Return with a Form 1099?
• What Is a Form 1099?
• How Do You File If You Are Self-Employed?
• Search for Tax Forms or/and Publications.

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