File Your 1099s
What’s a 1099 and Do I Need to Prepare One?
1099s are informational reporting used to tell the recipient how much they were paid of a certain income type in a given year. You may be used to receiving one or multiple types of 1099s, including but not limited to a 1099-INT (Interest Income), 1099-NEC (Non Employee Compensation), 1099-MISC (for Miscellaneous Income), and others.
As a business owner, you may be subject to providing a 1099 to one or more businesses or individuals you pay for services within your business. We’ve gathered the most common 1099s business owners need to prepare and provide to their payees. Expand the sections below to learn more.
Did you Pay for Services in Cash?
Cash has a very broad definition here: it includes certain ACH payments (transfers or non-payroll related direct deposit). For years 2025 and earlier, if a business pays an individual, LLC that has not made an election to be treated as a corporation, or a Partnership more than $600 for services, that business has a 1099 filing requirement. There are some other transaction types that are considered cash. During tax return preparation, we ask more detailed questions as well as look through the information in your accounting software for payments that may require a 1099.
How do I file 1099s?
You can self prepare 1099s! In fact, we encourage you to.
File with Specific Filing Software
Tax Bandits and Track 1099 both offer an excellent filing experience. If you need specific support with the filing service you’ve chosen, please refer to that software’s support.
There are many other tools out there. If you prefer to use one of these, you can!
File Directly
You can also file directly with the IRS through IRIS.
Some states, including Oregon, also require 1099s be filed with them. Some software providers will include this as an option within the software. You can also file directly with Oregon’s iWire.
File with Other Software Already in Use
Some software you may already be using, including but not limited to, Gusto, Xero, and QuickBooks Online, will allow you to file your 1099s through them. While helpful, they don’ta wlays file in states – it’s often only with the IRS.
I'm not sure I need to do this.
Knowing whether or not you need to file a 1099 is hard stuff. 1099problems.io was built by a CPA based in Portland, Oregon who advises the advisors on 1099s. It’s where we go when we have questions about whether or not a 1099 is necessary.
Before we go there, we have to have all the facts and circumstances. Be prepared to know who you paid, how much, for what, and how.
During tax return preparation, we’ll look at your information and may offer some guidance on the possible necessity of filing 1099s.
I want to get ahead of this. Can you help me before tax season?
Yes! We’re happy to set up a tax season preparedness engagement for you. We usually start offering these in November. And you can always ask for one sooner.
Are there sate requirements?
Some states do have 1099 filing requirements, including Oregon and California. We do our best to inform you of your filing requirements in the fall leading up to the tax season and during tax return preparation. We encourage you to keep an eye out for year-end reminders and invitations.
But What About!?
We could write so very much more about 1099s. Much of it won’t be relevant to most of our clients. And, if it is, it’s usually fairly easy to catch during tax return preparation. Remember, it’s better to file late than not at all.
Knowing when to file a 1099 is complicated. It’s one of the many reasons we require our clients to make use of accounting software – it makes identifying the need to prepare 1099s straightforward.
We’re here to help you understand your potential 1099 filing requirement. And, yes, we really do look at everything you provide us to help determine if there is a 1099 to file, ask if it’s been prepared and filed already, and provide direction on getting it done.
This post has been developed as a generic explanation of 1099s. This information is written to be informative and is not tax advice. You should consult with your tax advisor as to how this information applies to your situation. Your specific needs may vary and may cause specific attention to need to be given to your processes. You should speak with your tax professional regarding the applicability of these issues to you and your business (and, yes, that includes Crayon Advisory if you are a current or onboarding client).