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Hometown Citizens - Homeland Heroes
Stacy Jackson
Hometown Citizens - Homeland Heroes
IntroductionIntroduction
Steps to TakeSteps to Take 1099-MISC1099-MISC
Prizes and AwardsPrizes and Awards Rent and Royalty PaymentsRent and Royalty Payments ServicesServices Attorney PaymentsAttorney Payments
Upcoming ChangesUpcoming Changes Final Notes & QuestionsFinal Notes & Questions
Hometown Citizens - Homeland Heroes
Steps to TakeSteps to Take
Be diligent with Accounts Payable Be diligent with Accounts Payable postings. postings.
OneOne vendor card for each vendor. vendor card for each vendor.
Transactions must be accurate.Transactions must be accurate.
Indicate 1099 Eligible Vendors in Indicate 1099 Eligible Vendors in QuickBooksQuickBooks
Hometown Citizens - Homeland Heroes
Vendor Edit ScreenVendor Edit Screen
Hometown Citizens - Homeland Heroes
Steps to TakeSteps to Take
Decide which vendors should receive Decide which vendors should receive a 1099-MISCa 1099-MISC
Obtain Form W-9 from all vendors and Obtain Form W-9 from all vendors and upload to eAccounting.upload to eAccounting.
Not required for members who are paid Not required for members who are paid reimbursements.reimbursements.
Hometown Citizens - Homeland Heroes
W-9 ExampleW-9 Example
Vendor should
choose one business
type.
Vendor should enter
one TIN number. This
number should match their annual tax returns.
Vendor should
sign form.
Hometown Citizens - Homeland Heroes
Steps to TakeSteps to Take
Determine the amount to be reported Determine the amount to be reported on each 1099-MISCon each 1099-MISC
Provide all information needed to file Provide all information needed to file your 1099-MISC Forms to your WFA. your 1099-MISC Forms to your WFA.
Must be provided no later than Jan 15Must be provided no later than Jan 15thth for the preceding calendar year.for the preceding calendar year.
Hometown Citizens - Homeland Heroes
1099-MISC1099-MISC
Required for the followingRequired for the following
Prizes and Awards Prizes and Awards
Rent and Royalty Payments Rent and Royalty Payments
Services performed by individuals who Services performed by individuals who are not are not
employees and are not incorporated employees and are not incorporated
Gross Proceeds paid to AttorneysGross Proceeds paid to Attorneys
Hometown Citizens - Homeland Heroes
1099-MISC Example1099-MISC Example
All of the information for the recipient must match their annual income tax return
Hometown Citizens - Homeland Heroes
Prizes and AwardsPrizes and Awards Reportable amount:Reportable amount:
$600 per calendar year$600 per calendar year Information needed:Information needed:
Individual’s name, address, and Social Individual’s name, address, and Social Security NumberSecurity Number
Total amount of all prizes and awards paid to Total amount of all prizes and awards paid to the individual or on the individual’s behalfthe individual or on the individual’s behalf
Example:Example: Flight scholarships or any cash awards to Flight scholarships or any cash awards to
membersmembers
Hometown Citizens - Homeland Heroes
Rent and Royalty Rent and Royalty PaymentsPayments Payments made to corporations and Payments made to corporations and
governments are exemptgovernments are exempt Reportable amount:Reportable amount:
$600 per calendar year for Rent & $10 per $600 per calendar year for Rent & $10 per calendar year for Royaltiescalendar year for Royalties
Information needed:Information needed: Name, address and Taxpayer Identification Name, address and Taxpayer Identification
Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return
Total amount of all rent or royalty payments Total amount of all rent or royalty payments paid to the vendorpaid to the vendor
Example:Example: Hangar rental, office rental, or storage rentalHangar rental, office rental, or storage rental
Hometown Citizens - Homeland Heroes
ServicesServices Payments made to corporations are exemptPayments made to corporations are exempt Reportable amount:Reportable amount:
$600 per calendar year$600 per calendar year Information needed:Information needed:
Name, address and Taxpayer Identification Name, address and Taxpayer Identification Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return
Total amount of all payments made for services to Total amount of all payments made for services to the vendorthe vendor
Example:Example: Catering, facility cleaning, lawn care, or pest Catering, facility cleaning, lawn care, or pest
controlcontrol
Hometown Citizens - Homeland Heroes
Attorney PaymentsAttorney Payments Payments made to corporations Payments made to corporations must still be must still be
reportedreported.. Reportable amount:Reportable amount:
Reportable for any amount paid per calendar Reportable for any amount paid per calendar yearyear
Information needed:Information needed: Name, address and Taxpayer Identification Name, address and Taxpayer Identification
Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return
Total amount of all payments made to the vendorTotal amount of all payments made to the vendor Example:Example:
Retainers and legal fees paid to law firmsRetainers and legal fees paid to law firms
Hometown Citizens - Homeland Heroes
Upcoming ChangesUpcoming Changes
Corporate exemption expires Corporate exemption expires December 31, 2011.December 31, 2011.
Goods exemption expires December Goods exemption expires December 31, 201131, 2011
Payments on credit cards will be Payments on credit cards will be reportable by payment card reportable by payment card processor after December 31, 2010.processor after December 31, 2010.
Penalties will increase to $250 per Penalties will increase to $250 per formform
Hometown Citizens - Homeland Heroes
Some Final NotesSome Final Notes
All forms must be filed with the same All forms must be filed with the same information as the individual or information as the individual or business uses to file their income business uses to file their income taxes each yeartaxes each year
All information should be reported by All information should be reported by calendar yearcalendar year
The Wing is responsible for obtaining The Wing is responsible for obtaining all information via Form W-9all information via Form W-9
Hometown Citizens - Homeland Heroes
Need Help?Need Help?
Contact your Wing Financial Analyst Contact your Wing Financial Analyst or Financial Management at or Financial Management at National Headquarters!National Headquarters!
QUESTIONS?QUESTIONS?