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.

Who's required to E-file 1099s?

Pro Tips: 

• Always verify categories and assignment of vendors with your accountant
• Before getting started, make sure to have a current W-9 for each vendor and owner
• The tax ID for individuals is their social security number (SSN), and for a business, it is their employer identification number (EIN). You can enter zeros if you do not have an SSN or EIN number.
• Verify the accuracy of each vendor and owner's mailing address. This is where their copy of the 1099 form will be mailed, which they will use for their personal or corporate tax return. Military APO addresses are accepted; however, other addresses outside the US cannot be used.

Verify Your Information is Complete and Current

Before E-filing your taxes, we recommend doing some "housekeeping" to ensure complete, accurate information is submitted.

Pro Tip: Use this comprehensive, downloadable checklist to mark off important tasks as you complete each step. Links to helpful reports and additional details are provided here. Step-by-step details for items marked with a ⭐can be found below. 

1. ⭐Verify accurate contact and tax information in your Rentec Direct account for yourself, vendors, and owners
2. ⭐Check for duplicate Vendors 
3. ⭐Reactivate archived Properties (Properties must be active for transactions to be included in 1099s and can be archived after taxes are filed.)
4. Complete tenant move-outs
5. Tenant Security Deposits - Confirmed reconciled and up to date
6. Maintenance expenses - Record all pending maintenance expenses
7. Review Transactions
   1. ⭐Verify that all transactions are categorized
   2. ⭐Verify that all transactions are assigned to a property
   3. Post any pending transactions
8. ⭐Review Rentec Direct 1099 Tax Assistant Report
9. Create an account with Nelco or sign in to update your password

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

1a) Verify Your Contact and Tax Info

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

1b) Verify Owner and Vendor Contact and Tax Info 

1. Click on Reports
2. Under Tax Reports, click on 1099 Tax Assistant
3. Use the current W9s to compare to displayed Tax IDs and Addresses

_______________

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

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 

_______________

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

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 

2) Duplicate Vendors

When expenses are entered, if a vendor is manually entered and not selected from the dropdown options, it can create a "Duplicate Vendor." Quickly verify duplicates and merge information 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 will appear, indicating transactions and recurring transactions associated with the vendor and the option to "Choose a New Vendor," which will move the transactions to the correct vendor.
5. Click on Delete Vendor 

3) Reactivate Archived Property

Properties must be active for transactions to be included in 1099s. (After taxes have been filed, remember to archive the properties)

In your Rentec Direct account

1. Click on Properties
2. Click on Archives
3. Right-click on the property and click on Re-Activate

7) Review Transactions

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

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

The Category Ledger report allows you to scroll through and identify transactions that are uncategorized and/or not linked to a property at a glance. The following steps walk through creating a 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

8) 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

Frequently Asked Questions