The TRUTH about 1099 Reporting for Business Owners
The TRUTH about 1099 Reporting for Business Owners  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Oct 02 2024
Description: Send us a textDo you know the different types of 1099 forms your business may need to file?In this episode, host Mike Jesowshek is joined by Christina Wright from Tax Bandits to discuss everything business owners need to know about 1099 forms. The conversation covers different types of 1099s, when they need to be filed, and who is required to receive them. Christina provides insights into the importance of collecting W-9 forms, staying organized with vendor payments, and filing 1099s accurately and on time. They also address changes in 1099-K requirements, discuss the new 1099-DA for reporting digital assets, and highlight how software solutions like Tax Bandits simplify the filing process.Learn how staying organized and using the right tools can make tax season stress-free![00:00 -  04:45] Overview of 1099s and TypesChristina explains the purpose of 1099 forms.She discusses the various types of 1099s, including NEC (Non-Employee Compensation) and MISC (Miscellaneous).She also shares the importance of understanding 1099 filing as an IRS requirement for business owners.[04:46 - 10:27] W-9 Form Importance and Vendor OnboardingChristina explains the $600 payment threshold for issuing 1099s.The threshold is cumulative over the year, not per individual payment.Missing or incorrect information can lead to complications when filing 1099s.[10:28 - 15:59] Common Issues and Filing Best PracticesInaccurate details (e.g., TIN, business name) on 1099 forms can cause IRS rejections.Businesses should use processes like TIN matching to verify information early.[16:00 - 19:20] 1099 Filing Solutions: Tax BanditsChristina shares an overview of how Tax Bandits simplifies 1099 filing.How integrating accounting software like QuickBooks and Sage can help streamline the process.She shares the benefits of cloud-based filing and validation features.[19:21 - 26:38] 1099-K and Recent ChangesChristina discusses changes to the 1099-K threshold from $20,000 to $5,000 for electronic payments.The IRS shifted towards increasing reporting transparency for third-party transactions.She Introduces the new 1099-DA for reporting cryptocurrency assets.Key takeaways for business owners: collect W-9 forms upfront and keep good payment records.Notable Quotes:"The main thing business owners need to know is that 1099s are used to report payments for a lot of different things to different parties." – Christina Wright"The $600 threshold is not based on one payment—it’s cumulative over the entire year." – Christina WrightCheck out this episode’s blog post: How Does the Home Office Deduction Work?______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/VISIT: www.TaxSavingsTV.com