The new year may mark the start of new beginnings for many, but those filling out their 1099 forms may see this time of year in a different light. Whether you are an accountant or going through the filing process for your business, it is important to keep in mind the most common types of 1099 forms that you may need to complete. Likewise, the following guide will offer a refresher on the forms that you possibly filed in 2018.
What is the Form 1099-MISC?
The Form 1099-MISC is the type of form that underwent some notable adjustments in the past year. Since 2020, it is one of the types of 1099 form 2018 that works a little differently than you may recall from back in 2018. You will need to file this form to anyone whom your business paid at least $10 in royalties. The same is applicable to broker payments that served as a substitution for dividends or tax-exempt interest.
The Internal Revenue Service reintroduced the 1099-NEC form in 2020. The form was last used in 1982. It was reintroduced in the past year in an effort to clarify the separate filing deadlines for different payment types on the Form 1099-MISC. Prior to the tax year 2020, businesses would also use the Form 1099-MISC to report non-employee payments that totaled $600 or more from the business or trade. Up until the past year, they appeared in Box 7 and typically represented non-employee compensation.
1099-DIV Types of 1099 Form 2018
If you filed Form 1099-DIV, one of the reasons was because you paid dividends to an individual. These dividends include capital gain and exempt-interest ones. Additionally, you needed to file the form to anyone for whom you withheld and paid foreign tax on dividends. The same principle applied to distributions on stock. These are just a couple of the circumstances that you will find yourself needing to report to the IRS.
Alternatively, you were not required to report substitute payments in lieu of dividends on Form 1099-DIV. Additional instructions are outlined in Box 8 in the 2021 Instructions for Forms 1099-MISC and 1099-NEC.
When Should You File Form 1099-INT?
Form 1099-INT is one of the types of 1099 form 2018 that you filed for all individuals for whom you withheld and paid any foreign tax on interest. One of the other listed reasons for filing the Form 1099-INT for a person that you withheld and did not refund federal income tax under backup withholding rules. For that instance, the payment amount is inconsequential.
Luckily, it has never been easier than it is now to find 1099 forms online. Advanced Micro Solutions software, specifically the W-2/1099 Filer, has almost every type of 1099 form that you might require. If you are looking for the updated 2020 versions of forms or are back-filing taxes, and need types of 1099 form 2018, our software has an easy-to-use format.