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

Rentec Direct property management software provides the tools to ensure that electronically filed Federal and State 1099-MISC and 1099-NEC forms are submitted with current, accurate information.

Note: Rentec Direct does not offer legal advice, and tax filing requirements can vary by area/state. Be sure to verify with your accountant the filing methods and tax requirements that apply to you.

Verify Your Information in Your Rentec Direct Account is Complete and Current (Housekeeping)

To ensure all information is accurate and submitted correctly before E-filing your taxes, we strongly recommend completing this "housekeeping" checklist.

Tip: Download or print Rentec Direct's 1099 Prep Checklist to track your progress

This article reviews the following subjects: click on an item to jump to that section.

1. Verify the accuracy of contact information in your Rentec Direct account for yourself, vendors, and owners.
   1. Update an Owner's Name, Address, or Tax ID
   2. Update a Vendor's Name, Address, or Tax ID
2. Check for duplicate vendors
3. Reactivate archived properties
4. Complete tenant move-outs
5. Tenant security deposits
6. Maintenance expenses
7. Review transactions
8. Review Rentec Direct 1099 Tax Assistant Report
9. Create an Account with  Nelco  or sign in to update your password

Verify Accurate Contact and Tax Information in Your Rentec Direct Account for Yourself, Vendors, and Owners

Your Contact and Tax Information

In your Rentec Direct account:

1. Click on Settings
2. Under Account, click on Your Contact Information
3. Make any necessary changes to your Name, address, and Tax ID
4. Click on Save Changes

Owner and Vendor Contact and Tax Info Verification

In your Rentec Direct account: 

1. Click on Reports
2. Under Tax Reports, click on 1099 Tax Assistant
3. Use the current W-9s to compare with the displayed Tax IDs and Addresses

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Update an Owner's Name, Address, or Tax ID

In your Rentec Direct account: 

1. Click on Owners
2. Right-click on the owner and choose Edit Owner 
3. Update the information
4. Click on Save Changes 

Update a Vendor's Name, Address, or Tax ID

In your Rentec Direct account:

1. Click on Settings
2. Under Financial, click on Vendors & Payees 
3. Right-click on the vendor and click on Edit Vendor

4. Update the information  

   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.

5. Click on Save Changes 

Check for Duplicate Vendors

When expenses are entered, if a vendor is manually entered rather than selected from the dropdown, it can create a "Duplicate Vendor." Easily identify any duplicate vendors, transfer the transactions to the correct vendor, and delete the duplicate.

In your Rentec Direct account.

1. Click on Settings
2. Under Financial, click on Vendor & Payees
3. Right-click on the duplicate and select Delete Vendor
4. The caution screen below appears, listing transactions and recurring transactions associated with the vendor, and includes the option to "Choose a New Vendor," which moves the transactions to the correct vendor.
5. Click on Delete Vendor 

Reactivate Archived Properties

Properties must be active for linked transactions to be included in 1099s.

In your Rentec Direct account:

1. Click on Properties
2. Click on Property Archives
3. Right-click on the property and select Reactivate to move the property to the current Property List
4. When you're finished filing 1099s, right-click on the property and select Archive

Complete Tenant Move-outs

If you still have any unfinished move-outs, apply any remaining payments received and move the tenant out.

Tenant Security Deposits

Confirm tenant security deposits are reconciled and up to date.

Maintenance Expenses

Record all pending maintenance expenses

Review Transactions

1. Review Transactions:
   1. Verify that all transactions are categorized
   2. Verify that all transactions are assigned to a property
   3. Post any pending transactions

Be sure all reportable transactions are categorized and linked to a property. Uncategorized transactions will not be included in the 1099s. 

Verify that all transactions are categorized and linked to a property with the Category Ledger report

In your Rentec Direct account:

1. Click on Reports
2. Under Accounting, click on Category Ledger
3. Select the Report Period (This Year)
4. Select All Properties
5. Use ctrl or shift to select all categories to be included
6. Click on Submit

Review 1099 Tax Assistant Report

The information in the 1099 Tax Assistant Report includes rents received and vendor payments entered throughout the year. It is the same data used for creating the 1099 E-file. 

System Note: When viewing the report, click on the vendor or owner to access their ledger to make any necessary changes.

In your Rentec Direct Account: 

1. Click on Reports 
2. Under Tax Reports, click on 1099 Tax Assistant 

Learn more about how to Edit, Correct, or Delete Transactions

After verifying information is current, click here for  1099 Tax Filing | Federal and State E-filing and Print Options

Create an Account with  Nelco  or sign in to update your password

You can easily create an account with Nelco or update your password directly through Rentec Direct.

In your Rentec Direct:

1. Click on Settings
2. Under Tools, click on 1099 e-File and Print
3. Click on Nelco dashboard

Frequently Asked Questions

Important Note:  Nelco Solutions submits forms electronically. If you choose not to E-file, Nelco Solutions does not mail forms to the IRS.

• When you E-file through Rentec Direct, the 1096 form is not needed.
• When filing on paper, the 1096 form serves as a cover sheet to inform the IRS how many forms are being filed when you mail your batch of 1099s. 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 1099s, a 1096 form will be required; however, Rentec Direct and Nelco Solutions do not provide a 1096 form.

Q) How should vendors be classified

If you're unsure of how a vendor should be classified, you may want to consult with your accountant.

In Rentec Direct, vendor options are:

• Non-Employee
• Other 

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. Refer to the IRS 1099-MISC filing instructions for help selecting the filing type you should use.

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