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

Rentec Direct property management software provides tools to ensure that electronically filed Federal and State 1099-MISC and 1099-NEC forms include 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 as you complete each step.

This article covers the following topics. Click any item below to jump directly to that section.

1. Verify contact and tax information for your account, owners, and vendors
   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 Contact and Tax Information

Start by confirming that the contact and tax information for your account, owners, and vendors is complete and current. Accurate information helps ensure your 1099s are prepared correctly.

Verify Your Contact and Tax Information

In your Rentec Direct account:

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

Verify Owner and Vendor Information

In your Rentec Direct account: 

1. Click 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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Updating Owner and Vendor Information

You can easily update each owner's and vendor's information in Rentec Direct.

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

Duplicate vendors can occur when a vendor name is typed manually instead of being selected from the vendor list. Before filing your 1099s, merge duplicate vendors so all payments are reported correctly.

In your Rentec Direct account.

1. Click 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 Delete Vendor 

Reactivate Archived Properties

Only active properties are included when generating 1099s. If you archived a property during the year, temporarily reactivate it before filing.

In your Rentec Direct account:

1. Click Properties
2. Click Property Archives
3. Right-click the archived property and select Reactivate
4. When you're finished filing 1099s, you can archive the property again if needed.

Complete Tenant Move-outs

Complete any unfinished tenant move-outs before filing your 1099s. Apply any remaining payments, finalize tenant balances, and complete the move-out process so your records accurately reflect the year's activity.

Review Tenant Security Deposits

Verify that all tenant security deposits have been properly recorded, reconciled, and reflect the correct balances.

Record Maintenance Expenses

Enter any outstanding maintenance expenses before filing your 1099s to ensure all

Record all pending maintenance expenses

Review Transactions

Before creating your 1099s, confirm that all reportable transactions are complete and accurate.

Be sure to:

• Verify every transaction is categorized
• Verify every transaction is assigned to a property
• Post any pending transactions

Important Note: Uncategorized transactions or transactions that are not linked to a property will not be included in your 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 the Bank Account or All Accounts
5. Hold Ctrl or Shift to select all categories to be included
6. Click Submit

Tip: You can verify transactions posted to the property are linked to a bank account by pulling the report by Properties

Review 1099 Tax Assistant Report

The 1099 Tax Assistant Report includes rents received and vendor payments entered throughout the year. It uses the same data used to create the 1099 E-file. 

System Note:  Click any owner or vendor name within the report to open their ledger and make corrections if needed.

In your Rentec Direct Account: 

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

If you need to make changes, see Edit, Correct, or Delete Transactions

Once you've confirmed everything is accurate, continue to  1099 Tax Filing | Federal and State E-filing and Print Options to submit your forms.

Create or Sign In to Your Nelco Account

When you're ready to e-file, you can create a Nelco account or sign in to your existing account and update your password directly from Rentec Direct.

In your Rentec Direct:

1. Click Settings
2. Under Tools, click on 1099 e-File and Print
3. Click Nelco Dashboard to create an account, sign in, or update your password.

Frequently Asked Questions

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

Learn more about who is required to e-file Federal1099s.

No. If you e-file your 1099s through Rentec Direct, Form 1096 is not required.

• 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, you will need a 1096 form; however, Rentec Direct and Nelco Solutions do not provide a 1096 form.

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 in 1099 NEC and 1099 MISC Changes & Requirements for Property Management