Buildium offers a 1099-MISC eFiling service to help you save time during tax season. Buildium can help you efile your 1099 tax forms with the IRS, and mail paper copies to the vendors and rental owners that were filed for.
A 1099-MISC is a US tax form that reports non-employee income and compensation (or "miscellaneous income") to the IRS. This form is also used to report income made off of rental properties by rental owners.
The IRS requires that you send one 1099-MISC form to each contractor/vendor and rental owner to who you paid more than $600 during the tax year. Some states also require a copy of the form.
Buildium's 1099-MISC service will:
- Calculate the totals to include on your tax forms.
- E-file with the IRS and mail paper copies to your vendors and rental owners in one single step. Additional fees apply
- Produce a batch summary report that can be used to work with an outside accounting firm.
For more information on Form 1099-MISC, contact the Internal Revenue Service, visit www.irs.gov, or speak with a tax advisor.
In this article, you’ll learn how to:
- Create a batch of 1099-MISC recipients
- eFile and ship your 1099-MISC tax forms
- Track your 1099 batch
What about 1096 forms?
If you e-File through Buildium, the 1096 form is not required. The 1096 is a cover sheet that tells the IRS how many paper forms are included in the box when you mail in your batch of 1099-MISC forms. Because we're filing electronically, the computer does the count automatically and the 1096 is not needed.
A batch is a grouping of 1099-MISC forms, which can contain as many recipients as necessary for a single payer. For associations, a separate 1099 batch needs to be filed for each HOA under management.
Creating a batch in Buildium calculates the recipient totals that will appear on the tax form. When you’re finished, you’ll have a summary report to review, archive, or share.
Buildium does allow you to create multiple batches at one time, and will file each batch appropriately based on the payer information.
|The payer is the entity who is filing the 1099s with the IRS. Property management companies, self-managed associations, and third party managed associations will all need to file 1099 forms at the end of the tax year. Here are the instructions from the IRS and some general advice that we've picked up from other customers over the years.|
To create a 1099-MISC batch:
1. Navigate to Accounting > 1099-MISC tax filings.
2. Click Create batch.
3. Select the date range, and what type of property you want to file for. If you need to file for both rentals and associations, select both check boxes.
4. If you selected to file for rentals, Click Next: Select rental recipients. If you are only filing for associations, click Next: Select association recipients.
5. Select your eligible recipients. A recipient is the vendor or rental owner to whom you will send a 1099-MISC form.
|Not sure who to pick? You're supposed to send a 1099-MISC form to rental owners who have earned more than $600 in rents and other income, and vendors who have been paid more than $600 in the tax year. Here is guidance from the IRS.|
There are 3 groups on the select recipient page:
- Those who have tax information in the system and have been paid more than $600 for the tax year
- Those who have no tax information, but have been paid more than $600 for the tax year
- Everyone else
The recipients who have tax information in the system and have been paid more than $600 for the tax year will already be selected with a check.
Gather the taxpayer ID for your rental owners and vendors with the W-9 form (Request for Taxpayer Identification Number and Certification). Here is Buildium's W-9.
If you are unable to get the taxpayer ID for one of your recipients, the IRS will still allow you to file a 1099-MISC form. There may be an IRS penalty, unless you can successfully explain why you chose to work with this recipient without a taxpayer ID. In the future, get a W-9 when you begin the relationship.
You'll need to do so outside of Buildium, though. Our product requires a taxpayer ID.
5. If you need to add tax information for an eligible rental owner or vendor who happens to be missing an address or tax ID number, you can click the name of the recipient to add or edit their 1099 tax filing information, there’s no need to leave the 1099 wizard.
6. Once the information is added, the recipient will automatically move into the first group on the page, and will be selected with a check.
7. If you only manage rentals, click Next: Verify amounts.
8. If you manage associations, click Next: Select Association Recipients.
9. On the Association recipients page, select which associations you want to file a batch for by placing a check in the box next to each association. Buildium will file each batch according to the payer, but you are able to edit and select recipients for multiple associations on one page.
10. Enter the association tax information, then select recipients according to the same workflow listed in steps 5 and 6.
11. When you've selected all eligible recipients, click Next: Verify amounts.
7. Verify the amounts that Buildium suggests for your selected rental owners and vendors.
The totals for your recipients are calculated based on your accounting data collected over the tax year across all properties. Unlike most other reports in Buildium, the 1099 calculations include data from both active and inactive properties.
Buildium calculates rental owner totals on the gross income earned by a rental owner over the tax year, not net income.
The vendor totals in Buildium are based on the checks that were paid out to the vendor from the system from each payer.
If you’d like to see where these numbers are coming from, you can run an income statement for rental owners, and a vendor ledger for vendors for the fiscal year.
Though Buildium’s 1099 functionality will pull totals from inactive properties, neither of these reports will include that information unless the property is reactivated
8. Click the totals to make changes if needed. Edits may be necessary if you're new to Buildium and have accounting data in another system.
If you make an update, Buildium will display the updated total in the Total box, but will still display Buildium’s initial suggested total in the Suggested total box.
If you want to undo the changes you’ve made to the amounts, click the Reset option next to the recipient’s name. The reset link will only appear if a change has been made.
Once you’ve verified all of your recipient amounts, you have two options. You can choose to Save and file later, or E-file now.
Buildium does not offer the ability for you to manually print the 1099s yourself.
If you choose to save and file later, you can find the batch back on the 1099-MISC page by navigating to Accounting > 1099-MISC tax filing. Though you are able to create multiple batches in bulk, if you save and file later you will need to edit each batch individually.
If you choose to E-file now, you’ll be brought to the Review order page. Confirm your order and select your shipping options.
You can choose to print archive copies for you files for an extra $1 per form, and choose to ship the recipient forms to yourself instead of having us mail them directly to your owners or vendors. We strongly encourage you to order archive copies for your files to prepare for future audits.
Agree to the affidavit, then click Place order.
We are not able to make any changes to your order once it is placed. You will be able to e-file a correction once the forms have been shipped.
Charges appear on your Account and billing page as Fee for eFiling 1099-MISC batch #X (#Y recipients).
This step helps you track your forms as they are sent out from Buildium's processing center.
Buildium provides tracking information for your 1099-MISC batch so that you know exactly where we are in the process.
We'll keep you updated on the status of your 1099-MISC batch so that you know exactly where we are in the process.
You can find the status in line with the batch on the 1099-MISC tax filings page.
You can also find the status of your batch on the 1099-MISC tax filings page. It appears in a green bar at the top of your batch. To get there:
- Go to the Accounting menu.
- Go to the 1099-MISC tax filings page.
- Click your batch.
You can track three things:
The status of your e-Filing with the IRS.
The status of your recipient (rental owner and vendor) forms.
Recipient forms are sent by US Mail. We can only track that they have left the facility; once they're "in the mail" there is no further tracking available. If you shipped the forms to yourself, we will provide a tracking number.
Generally, recipients will receive their 1099-MISC forms in the mail within a few days from when it left the facility.
The status of your archive forms.
We will provide a tracking number in the status when it is available.