1099 Tax Forms | Federal and State E-filing and Print Options

Through Rentec Direct, you can file owner and vendor Federal and State 1099-MISC and 1099-NEC forms electronically and use the service which will print and mail the forms on your behalf. 

Recommended Preparation Prior to Using the 1099 Federal and State E-Filing and Print Options

Verify you have the correct federal tax id number for each owner and vendor. For individuals, this is their social security number (SSN) and for a business, it would be their employer identification number (EIN). If you do not have an SSN or EIN number you can enter zeros.  Important NoteMake sure to have a W-9 on file for each vendor and owner.

Verify the accuracy of the mailing address for each vendor and owner. The address is where their copy of the 1099 form will be mailed to which they will be using for the personal or corporate tax return. Military APO addresses are accepted, however, any other addresses outside of the US can not be used.

Update a Tax ID, Address, or Name for a Vendor 

In your Rentec Direct account:

  1. Click Settings.
  2. Click Manage Vendors & Payees under the People section.
  3. Right-click on your choice and then Edit Vendor from the menu. 
  4. Update the information for the vendor or payee. 

    System Note: Check the 1099 box and choose Non-Employee to signal Nelco Solutions to produce the 1099-NEC form or choose Other to produce a 1099-MISC form. To learn more about those two forms, check out the Frequently Asked Question section below. 
  5. Click Save Changes when finished.

Update a Tax ID, Address, or Name for an Owner

In your Rentec Direct account: 

  1. Click Owners.
  2. Right-click the Owner and choose Edit Owner from the menu. 
  3. Update the information for the owner.
  4. Click Save Changes when finished.

Verify the financial data and accuracy of data-entry numbers. It is never too early to begin auditing your data. The software provides a 1099 Tax Assistant Report to review and confirm the numbers match your records. 

Review the 1099 Tax Assistant Report 

In your Rentec Direct Account: 

  1. Click Reports
  2. Click on the Financial Reports section. 
  3. Click on the 1099 Tax Assistant option.

NoteThe information found in this report is the same data used for creating the 1099 E File. This report and the 1099 E file system will utilize the rents received and vendor payments entered throughout the year. 

Important Note: For information to be included on this report (and ultimately to the creation of your 1099s) to ensure your reported 1099s information is accurate: 

  • All properties will need to be "active" in order to be included in EOY (End Of Year) reporting. If your properties have been archived, you will need to re-activate them in order to include them in your 1099 filings. 
  • Be sure all reportable transactions are categorized because if you leave any transaction 'uncategorized' it will not affect 1099s. 

Instructions for creating categories can be found here: Setting Up Categories | Chart of Accounts

Instruction for editing transactions can be found here: Edit, Correct, or Delete Transactions

How to Reactive a Property

In your Rentec Direct account: 

  1. Click Properties.
  2. Click the Archives option on the main menu. 
  3. Right-click on the Property and choose Re-Activate from the drop-down menu. 

How to Use the 1099 e-File and Print Service

1099 MISC and 1099 NEC E-Filing and Print options are handled through an IRS approved 3rd Party (Nelco) who will bill separately for the service. You have full E-file functionality with the IRS as well as a Mail Out To Recipients and Print option. 

: Clients who process their 1099s through their Rentec Direct account can use the coupon code Rentec22 for 1 free federal e-filing, mailing and online retrieval – expires 5/1/23. See below for additional pricing details. 

In your Rentec Direct account: 

  1. Click Settings.
  2. Under Tools click Utilities
  3. Click on the 1099 E-File and Print option.

1099 e-fil and print options

If the information is not complete, you'll be required to update it before being allowed to submit your forms.

1099 e-File pre-submission screen for data validation

Important NoteThis tool automatically enters the Rent Received totals for each of your owners rather than Distribution totals. If you believe that you are required to report the amounts distributed to your owners rather than the amount of rent received, update these totals on our tool before continuing to the next step. The Distribution totals are displayed on the 1099 Tax Assistant report along with the Rent Received totals.

After using Rentec Direct to submit your forms to Nelco, you will then be able to create an account with them and login to their website which will provide you with further options such as Federally E-Filing your forms, use their Recipient Delivery service to mail out the forms, or both.

If you are logged into the Nelco website and are not able to see the screen below, click on Manage Account, and update your password. Nelco requires that your password be reset every year.

Nelco and Rentec Direct efiling options

Verify all Data-Entry for Accuracy Prior to 1099 Filing 

Important Note: It is extremely important to verify all information before E-Filing your forms. Once you have paid to E-File a form, neither Rentec Direct or Nelco will have the ability to stop or make any changes to your submitted forms. After a form has been E-Filed, if you need to make a correction, you may be offered the option to file the corrections on the Form Filing History screen in Nelco by clicking the edit button on the 1099 or by contacting the IRS directly to submit a change request.

While processing the forms, you will be able to preview them and print out a summary report and a detailed report. However, you will not have access to print any 1099 MISC and 1099 NEC forms until after you've paid to E-File them or use the Recipient Mail & Online Retrieval service.

Nelco dashboard for 1099s

Instructional Video

The following video walks you through the process of submitting your 1099-MISC and 1099-NEC tax forms with Rentec Direct through the Nelco Dashboard. Note: Pricing details and frequently asked questions are located below this video. 

1099 Tax Form E-File | Rentec Direct Training

Pricing Information 

2022 Nelco Solutions 1099 Pricing Information for Rentec Direct Clients

Nelco offers an easy tool to determine your filing requirements and deadlines here: State & Federal Deadlines

Frequently Asked Questions

Federal E-Filing Requirements
Any person, including a corporation, partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns electronically. The 250 or more requirement applies separately for each type of return and separately to each type of corrected return. 
For example, if you must file 100 Forms 1099-B and 300 Forms 1099-INT, Forms 1099-B need not be filed electronically since they do not meet the threshold of 250. However, Forms 1099-INT must be filed electronically since they meet the threshold of 250.

Is a 1096 form required?

When you E-File through Rentec Direct, the 1096 form is not needed. When paper filing, the 1096 form is used as a cover sheet to let the IRS know how many forms are being filed when you mail in your batch of 1099's. When E-Filing, the system electronically notifies the IRS as to how many forms are being filed, and the 1096 is not required.

If you choose not to E-File and select the Recipient Mail & Online Retrieval service instead, this will send a copy of the 1099s to each of your vendors/owners. You will then be able to go to the Form Filing History section of the Nelco website to review and print out the forms so that you can manually file them. If you are manually filing your 1099's, then a 1096 form will be required, however, Rentec Direct and Nelco do not provide you with a 1096 form.    

Classifying a Vendor: [x] Non-Employee vs. [x] Other
When editing your vendor accounts in Rentec Direct you can choose whether to mark your vendors as Non-Employee or Other on your 1099's. 

With the 1099-MISC box checked, the vendor will be enabled to show up on 1099 reports and electronics 1099-MISC filing. To disable tax reporting for the vendor, uncheck the box. Select the 1099 filing type from the dropdown menu. Refer to the IRS 1099-MISC filing instructions for help selecting the filing type you should use.

What is the difference between a 1099-MISC and the 1099-NEC?
In 2020 the IRS reinstated the 1099-NEC (non-employee compensation) form into the 1099 reporting. Previously, only 1099-MISC forms were required. Your Rentec Direct software is programmed to trigger the correct form based on the vendor and payee settings in your software.  More information on these changes can be found here | 1099 NEC and 1099 MISC Changes & Requirements for Property Management

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