1099 Tax Filing | 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 mail copies to the owners and vendors on your behalf.
Who is required to E-file their 1099s?
Important Note: We recommend a quick review of your account to save you time and make sure only complete, accurate information is submitted. We have created this helpful, step-by-step article with a downloadable 1099 Tax Prep | Federal and State E-filing and Print Options
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 Solutions), which 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.
In your Rentec Direct account:
- Click on Settings
- Under Tools, click on Utilities
- Click on 1099 E-File and Print
Review the list of Vendors and Owners for any values in red that must be fixed before transmitting to Nelco. If the information is not complete, you'll be required to update it before being allowed to submit your forms.
Check the box next to the Vendors and Owners that are ready to be submitted (You may want to make corrections to submit all requests together)
Click on Continue to Next Step
You will be provided a list of Vendors and Owners included in the submission. If the list is correct and you would like to proceed, click on Continue to Next Step
You will be presented with a message advising Your 1099 data has been transmitted to Nelco for processing. Click on Continue to Nelco to Initiate e-File
After using Rentec Direct to submit your forms to Nelco Solutions, you can create an account with them and log in to their website. This will provide you with further options, such as Federally E-Filing your forms, using their Recipient Delivery service to mail out the forms, or both. To complete the filing, log in to Nelco using your Email and Password. If this is your first time using Nelco, click on Create Account.
Important Note: This 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 before continuing to the next step. The Distribution totals are displayed on the 1099 Tax Assistant report along with the Rent Received totals.
When filing your taxes online through your Rentec Direct software, enter the following code to receive 1 free federal e-filing, mailing, and online retrieval. The code will be RENTEC with the year the taxes being filed are for ie., RENTEC24 for filings in 2024:
If you are logged into the Nelco Solutions website and cannot see the screen below, click on Manage Account and update your password. Nelco Solutions requires that your password be reset every year.
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 Solutions 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 Solutions 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.
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 Solutions Dashboard.
Note: Pricing details and frequently asked questions are located below this video.
1099 Tax Form E-File | Rentec Direct Training
Tax Year 2024 Pricing Information
All prices are per-form
Nelco Solutions offers an easy tool to determine your filing requirements and deadlines here: State & Federal Deadlines
Learn more about 2024 Pricing and deadlines
Frequently Asked Questions
Q) Who is required to E-file Federal 1099s?
A) Any person, including a corporation, partnership, individual, estate, or trust, who files a combined total of 10 or more forms must file electronically.
Important Note: Nelco Solutions submits forms electronically. If you choose not to e-file, Nelco Solutions does not mail forms to the IRS.
Q) Is a 1096 form required?
A) 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 can then go to the Form Filing History section of the Nelco Solutions website to review and print out the forms so you can manually mail in the tax forms. If you are manually filing your 1099's, then a 1096 form will be required; however, Rentec Direct and Nelco Solutions do not provide you with a 1096 form.
Q) How should vendors be classified
A) 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 electronic 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.
Q) What is the difference between a 1099-MISC and a 1099-NEC?
A) In 2020, the IRS reinstated the 1099-NEC (non-employee compensation) form in 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.
Learn more about 1099 NEC and 1099 MISC Changes & Requirements for Property Management
Important Note: Nelco Solutions submits forms electronically. If you choose not to e-file, Nelco Solutions does not mail forms to the IRS.
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 can then go to the Form Filing History section of the Nelco Solutions website to review and print out the forms so you can manually mail in the tax forms. If you are manually filing your 1099's, then a 1096 form will be required; however, Rentec Direct and Nelco Solutions do not provide you with a 1096 form.
Q) How should vendors be classified
A) 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 electronic 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.
Q) What is the difference between a 1099-MISC and a 1099-NEC?
A) In 2020, the IRS reinstated the 1099-NEC (non-employee compensation) form in 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.
Learn more about 1099 NEC and 1099 MISC Changes & Requirements for Property Management