How To File 1099 Electronically? - The Only Guide You’ll Need

Form 1099 is one of the forms you have to send every year. Once, the only way to do it is through snail mail. And there are many caveats to that. One, you can't just print a fillable Form 1099. You have to order from the IRS. Then, you have to know where to send it. The IRS mailing address is different for different locations. Thankfully, you can now file 1099 electronically.

Have you tried it yet, or did you just find out about it? If it's the latter, this article is for you. Here's how to complete 1099 Form online. We'll also discuss how to print your submitted 1099 Forms using the best tool available, Wondershare PDFelement.

Part 1. What Is a 1099 Form?

A Form 1099 is a form businesses and contractors have to submit to the IRS. It is an essential tool for enforcing tax laws and regulations.

There are three different types of Form 1099, each with a different purpose. Some of the most common ones are Form 1099 K, Form 1099 MISC, and Form 1099 NEC. Form 1099 K is a form payment settlement entities like PayPal have to file each year.

Meanwhile, Form 1099 MISC is for payments businesses made to nonemployees for anything that is not nonemployee compensation. It includes awards, prizes, royalties, rent, healthcare payments, and legal services.

Last is Form 1099 NEC, which used to be a part of Form 1099 MISC. This is specifically for nonemployee compensation. In other words, for payments businesses made for services from individuals and entities not employed by them.

For both Form 1099 NEC and Form 1099 MISC, the payment should be at least $600 within the tax year. Otherwise, a Form 1099 is not required.

Part 2. How To File 1099 Electronically With IRS Online

You no longer have to rely on US Mail to file your 1099 Forms to the IRS. Nowadays, you can just use e-filing services. Thankfully, the IRS offers one. It is called the Information Returns Intake System, or IRIS for short. Businesses can use it to submit any type of Form 1099 for free.

IRIS' introduction was not only for facilitating the filing process for businesses. It is part of a rule change. Starting this year, 2024, businesses filing 10 or more information returns are required to e-file them.

IRIS allows you to manually add a Form 1099. Alternatively, you can add up to 100 Form 1099s using a CSV. Here, we will discuss how to submit just one Form 1099 using this tool.

Prerequisites

Before you file your Form 1099 using IRIS, you need to get two things. One of them is an Employee Identification Number, which you may already have. The other one, however, is relatively new. It is the IRIS Transmitter Control Code. To get one, you need to apply here. The IRS may take up to 45 calendar days to process your application. So, do it in advance.

Once you have both, you can now proceed to the portal to file 1099 forms online.

1. Open a web browser and go to the IRIS page. Log into your account.
2. Start a new form.
3. From the dropdown menu, select the type of Form 1099 that you need to file.
4. Choose the payment year.
5. Enter your information, including your name, address, telephone number, and TIN.
6. Enter the recipient's name, address, telephone number, and TIN. You can find this in their W-9 Form.
7. Enter the amount you paid them.
8. Optionally, enter state payment information.
9. Submit the form.

Part 3. What Is the Best 1099 e-file Service

Suppose you need to file a Form 1099 immediately, but you do not have your TCC yet. Or you simply do not like using IRIS. You can use other IRS-approved e-filing services. Here, we will explore your best options.

1. QuickBooks

Pricing:

Simple Start -$15 per month

Essentials - $30 per month

Plus - $45 per month

Advanced - $100 per month

Quickbooks is a platform for businesses to easily track their finances. That includes tracking the payments you made to nonemployees, which Form 1099 covers. It is one of the IRS-approved e-filing services. And here is how you e-file 1099 Forms using QuickBooks.

1. Download or update QuickBooks on your desktop.
2. Click Vendors > 1099 Forms > Print/E-file 1099 Forms.

3. Select the Form 1099 that you want to create. Click Get Started.

4. Select the vendors registered on your QuickBooks account who need to receive a Form 1099.
5.  Click Continue.
6. Review the vendor's information. Update them if needed. Click Continue.
7. Select the payments to include in the form. Suppose you are filing a Form 1099 NEC. Choose only payments applicable to it. When done, click Continue.

8. Click Continue again.
9. You will see a list of contractors who will receive a Form 1099. Review and click Continue.
10. Click Go to 1099 E-File Service.

11. Follow the onscreen instructions to import your data into your Tax1099 account.
12. Choose how to send a copy to the vendors.
13. Enter your payment info, then click Pay & Submit.
14. Go back to your QuickBooks account to check your filing status.

2. TaxAct

Price:

Federal Professional Edition: $150 per edition

Professional Enterprise Editions: $35 per edition

TaxAct is another e-filing service you can use. It is simple and very easy to use. All you need to do is to fill out Form 1099 and then submit it. It is not integrated into a business tool like QuickBooks, so it's much simpler. But please note that you need to manually track whether or not the state or the IRS has accepted your returns. You can do this by visiting their E-file and Tax Refund Status page.

3. TurboTax

Price:

Do your own taxes: $0 - $89

Assisted - $0 - $169

Full Service - Starting at $89

TurboTax is a tax preparation software developed by Intuit. The tool is designed to help individuals and small businesses prepare and file their taxes accurately and efficiently. It offers a user-friendly interface and guides users through the process of completing their tax returns, step by step. That said, it is one of the easiest tools to use with regard to filing your Form 1099 electronically.

4. H&R Block

H&R Block is a prominent tax preparation company that provides tax filing services, software, and financial solutions. Both individual contractors and small businesses can utilize this program. Established in 1955, H&R Block has grown into one of the largest tax preparation firms globally. The website offers different types of services. You can use it to file your Form 1099 on your own, which is free. Alternatively, you can e-file Form 1099 with help from experts H&R Block will connect you with.

Part 4. View and Print Form 1099 Using Wondershare PDFelement

We recommend downloading your submitted Form 1099 for two main reasons. One, you can review it and see if all information was correct or if you need to e-file a Corrected Form 1099. Two, it is useful for record keeping.

When downloading submitted 1099 Forms, always choose PDF when possible. The contents of PDFs appear consistent across different tools and devices. Furthermore, there are great PDF tools that offer security and other helpful features. Take Wondershare PDFelement as an example. Wondershare PDFelement has an Encrypt feature, different viewing options, and collated printing. These are all helpful for reviewing, storing, and printing Form 1099. On top of that, you can use Wondershare PDFelement on Windows, Mac, iOS, or Android.

Here's how to print multiple copies of your downloaded 1099 Form using Wondershare PDFelement:

1. Open the file on Wondershare PDFelement.
2. Click the Print button on the top left.

3. Specify how many copies you want to print.
4. Check Collate.

5. Click Print.

Conclusion

The world getting increasingly digital has allowed you to file Form 1099 electronically. The IRS has a tool of its own that you can use to file the forms. If you don't like it, you can use other IRS-approved e-filing services.

Then, for storing and managing your submitted 1099 Forms, you can use Wondershare PDFelement. With different Views, it offers a great reading experience. Furthermore, it offers collated printing, which streamlines printed document management. Last but not least, Wondershare PDFelement is available on almost every platform. Thus, anyone can use this tool.