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The 1099 and 1098 filing Deadline is quickly approaching.

There are currently two types of the form with their own specifications. 1099-MISC and 1099-NEC

Form 1099-NEC reports Non-Employee Compensation. Generally, you’re required to file a Form 1099-NEC if you meet all the following conditions:

You paid someone who’s not your employee

You paid for services in the course of your trade or business

You paid an individual, partnership or estate.

You paid at least $600 to the payee during the year. Electronic payments such as payments by credit card are not required to be reported (Currently payment you made using Zelle must be counted for 1099s) .

Form 1099-MISC reports the miscellaneous income you paid to individuals. Miscellaneous income includes:

At least $10 in royalties or broker payments

At least $600 (cash payments only. You do not need to report payments made by credit card. Same rules as above)

Rent

Prizes and awards

Other income payments

Cash paid from a notional principal contract to an individual, partnership, or estate

Any fishing boat proceeds

Medical and health care payments

Crop insurance proceeds

Payments to an attorney (in connection with legal services, but not for the attorney’s services i.e., a settlement agreement)

Nonqualified compensation

Form 1099-NEC is due to both the IRS and to recipients on Jan 31.

Form 1099-MISC is due Feb 28, if you file on paper, on March 31, if filing electronically. Statements to recipients are due on Jan 31.

There are no extensions for either form.