How to Use Tax1099

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It’s January, time to start thinking about taxes and getting your tax forms created.

There are two versions of software that accountants like to use to create 1099s Tax1099 and Track1099.

I like to use online software because I find it be cheaper and easier than trying to get the forms, fill them out, mail them, etc.

In this tutorial, I’ll show you how to use Tax1099.

Quick Instructions:

  1. Create an account at Tax1099.com
  2. Create a Payer: Click People -> Manage Payer in the left-hand menu
    1. Click the Add Payer button
    2. Enter your business information and click the Add button
  3. Create Recipients: Click People -> Manage Recipient in the left-hand menu
    1. Click the Add Recipient button
    2. Enter your recipients business or personal information and click the Add button
  4. Create 1099 Forms: Click Forms ->New Form in the left-hand menu
    1. Select the year, 2020
    2. Select the form, 1099-NEC
    3. Select Payer and Recipient
    4. Enter Nonemployee compensation, Federal income tax withheld and State tax withheld
    5. Click the Save & Continue button
  5. To send forms
    1. Select the type of forms
    2. Select the Payer
    3. Check off the form and check off how USPS Mail
    4. Click the Next button
  6. Enter your billing information

Keep reading for full instructions with screenshots.

After creating an account at Tax1099.com you’ll be in the dashboard. A pop-up will appear asking you to select a plan.

For s small business I suggest selecting the Essential E-File Plan as it’s pay as you go. This is the best option for small businesses only needing to create a few 1099s.

Selecting the Essential E-File Plan in Tax1099

On the left-hand side is a menu with several options, I’ll only be using two for this example:

  • Forms: Where you create, view, edit, submit, and manage forms.
  • People:  Where you manage payers (you, the business owner) and recipients (who will receive the form).

To add a Payer click  People -> Manage Payer in the left-hand menu.

Create a payer in Tax1099 from the menu

Click the Add Payer button.

Add payer in Tax1099 from the Manage Payer screen.

Enter your business information and click the Add button.

Add payer information in Tax1099

Now, let’s add a recipient by clicking People -> Manage Recipient in the left-hand menu.

Add recipient in Tax1099 by clicking Manage Recipient in the left-hand menu

Click the Add Recipient button.

Click the Add Recipient button in Tax1099 to add a recipient.

Enter the recipient’s information and click the Add button.

Adding recipient information to Tax1099.

Now I’ll show you how to send a 1099 form to your recipient. Click Forms -> New Form in the left-hand menu.

Creating a new 1099 form in Tax1099

Select the correct year, 2020, and the form, 1099-NEC.

Tax 1099 selecting the form you want to create.

Tax1099 will autofill the Payer and Recipient’s information. The only thing you’ll need to enter is the Nonemployee compensation,  Federal income tax withheld and State tax withheld.

Entering 1099-NEC data in Tax1099.

After you’ve entered the 1099-NEC information you have a few options. You can Save & Add New 1099-NEC or Save & Add New Form if you have additional forms to create. Or you can Save & Continue, which is what I’ll select for this example.

Saving a 1099-NEC in Tax1099

After saving you’ll be on the Select Forms page where you can select the forms that you’d like to send.

You’ll need to select the Payer and then you’ll see the 1099-NEC form you created.  Check the box to the left of the form, select USPS Mail and click the Next button.

On the payment page. You can see this single 1099-NEC will cost $4.40 to to e-file and mail to the recipient.

Payment amount for sending a 1099-NEC in Tax1099

Enter your billing information and you’re done.

That’s how easy it is to create your 1099’s with Tax1099.

If you’d like to watch me walk through the process of creating 1099’s with Tax1099 check out the video below:

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