By Jacqui Runholt, AP & Business Process Specialist
November 29, 2017
You may not be a tax expert, but if you work with vendors that provide services to your charter school, you’ll need to know the basics about 1099s. A 1099 Form is used to report income from self-employment earnings, as well as interest, dividends, and other earnings, and you’ll need to submit these forms to eligible vendors and to the IRS. We’ve put together a few tips to keep in mind leading up to tax season:
- Any vendor that is paid to provide services to your school could be eligible to pay taxes on 1099 income. As a best practice, get in the habit of requesting W-9’s from all your vendors when you start working with them, so you have the information you need to issue 1099s when the time comes.
- Start reviewing your vendor list now so you’re not scrambling to meet the January 31 deadline!
- If your charter school leases its facilities, the rent expenses may be reported on a 1099 Form.
- If you’re not sure if you need to submit a 1099 for a certain vendor, just go ahead and submit it. The IRS will know whether a vendor is eligible. It’s better to be safe than sorry.
The due date for submitting 1099s to vendors and to the IRS is January 31st, but don’t wait until then. If you’re done at the beginning of January, submit! Corrections can be made through the end of March.