181 ⎸ 1099 Training - Updates for 2025

Hey ambitious bookkeepers!

Welcome to 1099 Season! If this is your first 1099 season, buckle up, I’m here to help! Tune in today to hear an overview of what to know about 1099s so you’re armed with the confidence to take this on, and improve your processes for next year!

Listen here or on your favorite podcast player, or watch the video version on YouTube >>

Now let's dive into some highlights!

Understanding the Different 1099 Forms

First things first, let's get a lay of the land. Did you know there are multiple 1099 forms you should be aware of? The 1099 NEC, for example, is crucial for reporting payments of $600 or more to non-employees like independent contractors. But don't forget about the others like the 1099 Miscellaneous for rent and royalties or the 1099 INT for interest income. If you’re feeling overwhelmed, just remember you’re not alone. My podcast episode dives deeper into each type, so check it out if you need more insights.

Preparation is Key: Staying Ahead of the Game

The best advice I can give you about handling 1099s is to get ahead of it throughout the year. We're already in January, so if you're in a "better late than never" situation, that's okay—I've got your back. We integrate 1099 prep into our monthly client processes to make sure we're hitting all the right notes by the time January rolls around. It may just save you a ton of stress!

Using E-Filing Tools to Your Advantage

Speaking of saving stress, let's talk technology. I can't recommend e-filing enough. Whether you use Tax 1099 or Track 1099, these tools can be game-changers. They not only simplify 1099 processing but also allow for TIN matching. No more sleepless nights worrying about hitting that "submit" button!

Handling Corrections and the Art of Backup Withholding

Ah, the dreaded corrections. Mistakes happen, but they're not the end of the world. If you've filed a 1099 with errors, filing a corrected form is usually straightforward. And let's chat briefly about backup withholding—it's a necessary tool in your arsenal when vendors are hesitant to provide a W9.

International Vendors and Special Considerations

If you're dealing with international vendors, especially those paid outside third-party payment systems, it's a whole different ballgame. Make sure to collect the right forms like W-8BEN and understand any tax treaty benefits. It's a bit more complex, but necessary for compliance.

Your 2025 Plan of Attack

For those of you wanting to step up your game, consider joining our Confident Compliance Bundle. It's a complete package that includes SOPs, client communication templates, and a Canva template for presenting financial results. It’s only available until January 31st, so don’t miss out!

Thanks for catching up with me here. I hope this guide, just like our podcast episode, helps you navigate the 1099 season like a pro. Until next time, happy bookkeeping!

Cheers,

Serena

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