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.
- ⭐Verify accurate contact and tax information in your Rentec Direct account for yourself, vendors, and owners
- ⭐Check for duplicate Vendors
- ⭐Reactivate archived Properties (Properties must be active for transactions to be included in 1099s and can be archived after taxes are filed.)
- Complete tenant move-outs
- Tenant Security Deposits - Confirmed reconciled and up to date
- Maintenance expenses - Record all pending maintenance expenses
- Review Transactions
- ⭐Verify that all transactions are categorized
- ⭐Verify that all transactions are assigned to a property
- Post any pending transactions
- ⭐Review Rentec Direct 1099 Tax Assistant Report
- 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
- Click on Settings
- Under Account, click on Your Contact Information
- Make any necessary changes to your Name, address, and Tax ID
- Click on Save Changes
1b) Verify Owner and Vendor Contact and Tax Info
- Click on Reports
- Under Tax Reports, click on 1099 Tax Assistant
- 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:
- Click on Settings
- Under Financial, click on Vendors & Payees
- Right-click on the vendor and click on Edit Vendor
- 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. - Click on Save Changes
_______________
Update a Tax ID, Address, or Name for an Owner
In your Rentec Direct account:
- Click on Owners
- Right-click on the owner and choose Edit Owner
- Update the information
- 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.
- Click on Settings
- Under Financial, click on Vendor & Payees
- Right-click on the duplicate and select Delete Vendor
- 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.
- 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
- Click on Properties
- Click on Archives
- 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:
- Click on Reports
- Under Accounting, click on Category Ledger
- Select the Report Period (This Year)
- Select All Properties
- Use ctrl or shift to select all categories to be included
- 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:
- Click on Reports
- Under Tax Reports, click on 1099 Tax Assistant
Learn more about how to Edit, Correct, or Delete Transactions
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.
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