Software That Will Complete and File Those 1099-MISC Forms for You

Small Business Software That Can Help You Prepare 1099s

If you're a business owner, you're required to file 1099-MISC forms with the IRS to report any payments you made to vendors for goods or contractors for services. The form also reports prize money paid out and just about any other compensation made to anyone who is not your employee. You're required to do this because these individuals (or companies) must pay taxes on this income, and you haven't withheld any taxes from the payments because they're not your employees. You should provide the vendor or contractor with a copy of the form as well.

Generally, you must file a 1099-MISC form whenever you pay any non-employee $600 or more during the calendar year, although there are some exceptions to this rule. This means $600 in total, not per individual payment. If you make three payments of $200 each, you would have to report all three payments on Form 1099-MISC.

The filing threshold is subject to change and can increase or decrease at any time so it's advisable to periodically visit the IRS website to ensure that you know the current amount and keep abreast of other requirements. 

Most accounting software programs can help you prepare 1099s. Here are four of the most helpful.  

1
Real Tax Tools' 1099 Software

1099-MISC tax form

Real Business Solutions develops accounting and tax software for small business owners, including 1099 preparation software. You can create, file, and print 1099-MISC forms using this software. Visit the Real Business Solutions website for more information, including a demo, pricing, and other pertinent information.  More

2
Zoho Books' 1099 Software

Zoho Books is a cloud-based accounting software program for small businesses. One of the best features of Zoho Books is the website offers a detailed tutorial on how to prepare 1099s using their small business accounting software. Visit ​Zoho Books' website for more information. More

3
Greatland Yearli Software

Yearli.greatland.com lets you enter your 1099-MISC information online, after which you can file the forms electronically with the IRS and transmit them to your vendors and contractors. You can also import the 1099 data from your accounting software if your software is compatible with FileTaxes.com's system. 

4
Greatland 1099 software

This is another helpful product offered by Greatland. The company specializes in W-2 and 1099 reporting for small- to mid-sized businesses. You can import your accounting software data into Greatland's website and then e-file your 1099-MISC forms with the IRS and have the forms mailed directly to your vendors and contractors.  More

Be Sure to File Your 1099-MISC Forms

You'll want to make sure that you understand the filing requirements for 1099-MISC forms before you dive in to prepare them, even with the guidance of software. It's critical that you file your forms with the IRS on time and provide them to contractors and vendors before the yearly deadline. The penalties for non-compliance, especially failing to file or filing late, can be rather substantial. And, the penalties far outweigh the short amount of time it takes to prepare this information. Consider contacting a qualified tax professional if you have any questions about your responsibility for filing this form or any other tax form. Most accounting software programs such as QuickBooks can also be set up to easily file these 1099 forms. This option might be suitable if your business or enterprise is not large or complex, such as if you're a sole proprietor.