There are dozens of 1099s 2019, but some were more common that year than others. 1099 forms are used by the IRS to track payments made outside of employment. However, these forms are known to change from year to year – most recently, the popular 1099-MISC form. If you neglected to file a 1099 form in 2019, or if you’re trying to understand how these forms have changed in the years since, we’ll help you out. The below guide outlines the most common 1099 form 2019 filers used, as well as how a software tool can help file and prevent future mistakes.
The 1099-MISC is among the most used 1099 forms out there. This is likely a result of its multiple uses. Businesses and companies can use a 1099-MISC form to report various types of income, from rents and prizes to health care payments and crop insurance proceeds. But, while the 1099-MISC was likely the most used 1099 form 2019, 2020 brings a change. Beginning in the 2020 tax filing year, employers will begin to distribute the 1099-NEC to those who would have normally received a 1099-MISC for non-employment compensation. We’ll be curious to see how quickly the 1099-NEC gains in popularity and use.
The 1099-INT is likely the second-most common 1099s 2019. This form is used when people earn interest, like on an investment or in a savings account. In most cases, the businesses and companies that distribute 1099-INT forms are banks or financial institutions. The form details the amount a person has earned in interest. If you work for any type of financial institution, you have likely handled and helped distribute one of these forms.
These 1099s 2019 are a bit different from the others. While individual businesses won’t need to distribute this 1099 form 2019, accountants should be familiar with it. The forms are distributed by the Social Security Administration to those who have received Social Security benefits during a calendar year. By definition, only those who receive Social Security benefits will receive a 1099-SSA. Many accountants and estate managers work for elderly folks, and if this is the case, you’ll want to know how to handle the form. In many cases, this means checking the amount reported against the amount received, but it should also include archiving the report for future reference.
How Can a Software Solution Help?
Most 1099s 2019 have a 3-year statute of limitations. If you have yet to distribute any 1099 form 2019, or if your accounting client has not received a 1099 they are owed, there is still time to rectify the mistake.
That said, an accounting software tool can prevent these mistakes from happening in the first place. If you work for a company who handles a lot of 1099s, whether in 2019 or now, you should invest in a software tool. This can make 1099 completion and distribution quick and easy, and you’ll reduce the likelihood of missing a deadline or needing to file an extension. Our W-2/1099 Forms Filer is the best tool for the job, but there are several other AMS products that can help.