Form 1099

Form 1099 is a group of tax forms that clients use to report different types of payments to the IRS. These forms help the IRS keep track of various income, such as payments to independent contractors, interest, dividends, rent, retirement distributions, government benefits, and other types of non-employee income. Each type of payment has its own Form 1099 to make sure all income is reported correctly for tax purposes.

How Form 1099 Works

You can generate Form 1099 for your client’s vendors and associate accounts in the respective boxes. Then, export it as a CSV file and email it to your clients so they can file it in the IRS Taxpayer Portal. Once done, you can mark it as Filed in Zoho Practice.

Form 1099 Box Threshold Limits

In Zoho Practice, you can generate both Form 1099-MISC (Miscellaneous) and Form 1099-NEC (Non-Employee Compensation). Each box in the report has a threshold limit set by the IRS, and only vendors whose payments meet these limits must be included. Refer to the tables below for details on the different boxes and their minimum threshold limits for Form 1099 - MISC and Form 1099 - NEC:

Form 1099 - MISC

Form 1099 - NEC

Generate Form 1099

To generate Form 1099 for your client’s vendors:

• Go to Clients on the left sidebar.
• Select the client for whose vendors you’re going to generate Form 1099.
• Navigate to the Form 1099 tab on the left pane of the client’s Details page.
• Click + Generate Form 1099.
• In the Generate Form 1099 page, under the Map Accounts tab, fill in the following details:
  • Filing Form: Select either 1099-MISC or 1099-NEC.
  • Filing Year: Choose the year for filing Form 1099.
  • Once you select the form and the filling year, the Map Accounts to 1099 Boxes section will display boxes based on the type of 1099 you choose.
    • Hover over the boxes in which you want to add accounts, and click + Add Accounts. In the Select Account pop-up, under Recommended Accounts, you’ll see accounts filtered based on the accounts your clients used to record purchase transactions of 1099-tracked vendors. You can select the required accounts, and click Save.
    • If not, go to the All Accounts section, and select the required accounts you want to associate with the required boxes, and click Save.
• Click Next.

• In the Select Vendors tab, you can filter your client’s vendors as:
  • Tracked and Qualified Vendors: This filter shows vendors whose payments meet the IRS thresholds for the selected boxes and have their accounts correctly mapped for tracking.
    • If you want to exclude transactions of the vendor displayed, select over the required vendor, and click Exclude.
    • In the pop-up that appears, enter the Reason and click Exclude.
  • Tracked and Unqualified Vendors: This filter shows the vendors’ transactions are tracked and mapped to the correct boxes, but their payments do not meet the IRS threshold for the mapped box. You can manually add transactions to qualify them for Form 1099 filing. To do this:
    • Select the required vendor.
    • In the next page, click Include in Form 1099-MISC or Include in Form 1099-NEC, based on the form you want to generate.
    • Select the required box in which you want to associate with the vendor’s transaction, and click Save at the top of the vendor’s list.
    • In the Summary of Included Transactions pop-up, click Okay.
  • Non-Tracked Vendors: This filter includes the list of vendors for whom Form 1099 is not configured.
• Click Next.
• In the Review tab, check each vendor’s Tax ID, Address, and box values. If any details are missing, a warning will appear for each vendor. Hover over the warning and click Request Missing Details. It will be sent as a client request to your client, They will provide you with the necessary details using the self-service portal. You can also click Request Vendor Details to get the required details from your clients.
• Click Save and Generate.

The selected Form 1099 will be generated for your client.

Export Form 1099 for Filing

Once you’ve generated the Form 1099 for your client, you can export it to them in the CSV format, so that they can submit it in the IRS Taxpayer Portal. To export:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• In the page that follows, click Export for Filing in the top right corner.
• In the Client’s Organization Profile pop-up, fill in the required details, and click Save and Proceed.
• In the next pop-up, click Export.

The form will be downloaded in the CSV format, and you can send it to your client.

You can also download it for your reference after you’ve marked the Form 1099 as Filed.

Mark Form 1099 as Filed

Once your client has submitted the 1099 form to the IRS Taxpayer portal, you can mark it as Filed in Zoho Practice. Here’s how:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• In the page that follows, click the More icon in the top right corner of the page, and select Mark as Filed from the dropdown.
• In the pop-up that appears:
  • Select the required Date of Filing.
  • Enter the Software Used for Filing and provide a short Description, if required.
  • Click Mark as Filed.

The form will be marked as Filed.

Other Actions

There is a list of actions you can perform in the Form 1099 tab of the Clients module:

• Create Tasks
• Create Client Requests
• Download as a ZIP File
• Download as CSV
• Print Form 1099
• Send Email
• Mark as Unfiled
• Delete Form 1099

Create Tasks

You can create tasks and assign users to it, like verifying transactions that needs to be inlcuded in Form 1099, checking if the client has filed the form on their respective portal, and update that information in Zoho Practice, and much more. To create tasks:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• Click the Tasks icon in the top right corner.
• In the Associated Tasks pane, click + New Task.
• In the New Tasks pop-up, enter the required details, and click Save.

The task will be created. Similarly, you can also create tasks for a selected vendor when you generate the form.

Create Client Requests

You can create client requests to gather missing information, such as the vendor’s Tax ID, email, and billing and shipping addresses, while generating Form 1099. Here’s how:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• Click the Client Request icon in the top right corner.
• In the Associated Client Requests pane, click + New Client Request.
• In the New Client Request pop-up, fill in the required details, and click Save.

The client request will be created as a questionnaire with the required details. Your client can provide them using the self-service portal.

Download as ZIP File

You can download the vendor’s transactions as a ZIP file for references. Here’s how:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• Select the vendor whose details you want to download as a ZIP file.
• Click the ZIP icon at the top of the vendor’s list.

The vendor’s transaction details will be downloaded as a ZIP file.

Print Form 1099

You can print the vendor’s transaction details, or save it as a PDF for your reference. Here’s how:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• Select the vendor whose details you want to print.
• Click the Print icon at the top of the vendor’s list.
• In the pop-up that appears, check for the preview, and click Print.

Download as CSV

You can download the Form 1099 that is marked as Filed for future references. Here’s how:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• In the page that follows, click the Download dropdown in the top right corner, and select CSV (Comma Separated Value).

The Form 1099 will be downloaded as a CSV file.

Send Email

Once you’ve generated Form 1099 in Zoho Practice, you can send it to your clients. If your client is a Zoho Books user, you can directly email the Form 1099 to their vendors. If you’ve recorded your client’s data in Zoho Ledger, you can email the form to your client, who can then forward it to their respective vendors. To email the form:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• In the page that follows, click Send Email at the top of the page.
• In the pop-up that appears, click Send Email again.

The email will be sent to the respective vendors if your client is a Zoho Books user. If not, the email will be sent to your client, who can forward it to their vendors.

If you’ve already sent an email to your client or their vendors, click Mark as Sent at the top of the vendor’s list.

Mark as Unfiled

To unfile the Form 1099:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab, and select the required form.
• Click the More icon in the top right corner and select Mark as Unfiled.

The form will be unfiled. You can file it again, when required.

Delete Form 1099

To delete a Form 1099 generated in Zoho Practice:

• Go to Clients on the left sidebar.
• Select the client for whom you’ve generated the Form 1099.
• Navigate to the Form 1099 tab.
• Hover over the form you want to delete, click the dropdown next to it, and select Delete.
• In the pop-up that appears, click Delete to confirm.

The Form 1099 will be deleted.