generating a 1099-NEC for the first time first time

[Ionnowhy]

Hello,

I am using the Mac Home and Business version of Turbotax 2023.

My business paid a firm over $600 from a checking account and I am trying to understand the intricacies of generating a 1099-NEC for them and had the following questions:

1. I launch turbotax and on the first screen click on the link in the grow your business section and that takes me to https://quickemployerforms.intuit.com/home where I fill the appropriate information correct?

2. Once I fill it, the e-file forms is greyed out. I know the deadline is Jan 31 but when does it start?

3. Do I need to print and mail the form to the firm or can I email it or does turbotax automatically send it the firm as well?

4. Anything else I need to know or do once I finish the form here in the actual turbotax other than ensuring the expense is included in my expenses?

5. Lastly, if I use a credit card, I do not have to worry about this form and do not have to do anything else, correct?

Thank you!

[Bsch4477 · Accepted solution]

You will be able to efile the forms after January 8. After you do the efile you have to print the forms and mail the appropriate copies to your vendors. You don’t have to do anything else.  

[Ionnowhy]

Awesome. Thank you.

1. Just to confirm, I must mail (assuming a regular envelop is ok) and cannot email the form correct?

2. If the amount I paid in total is less than 600 or  if I use a credit card, I do not have to worry about this form and do not have to do anything else, correct?

[Bsch4477 · Accepted solution]

According to the IRS: Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-NEC [and Form 1099-MISC].

While you could email the 1099-NEC, it contains social security numbers so sending by regular mail would be more secure. 

[VolvoGirl]

@Ionnowhy   Why do you need to give them a 1099NEC?  You might not. What kind of firm?    Did they ask you for one?  You need to give a 1099NEC (previous a 1099Misc) to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099NEC with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

And it doesn't matter how you paid them by check or credit card  you still do the 1099NEC if required.  

[Ionnowhy]

@VolvoGirl 

It is an accounting firm that is structures as an LLC. I believe the onus is on the person who made the payment to report it and so, the firm doesn't have to ask. 

As suggested in one of the prior posts, I do not believe credit cards require a 1099 NEC.