Form 1099-misc is provided by a company to an individual or entity when the individual or entity provides services and receives greater than $600 in compensation. Non-profit organizations are not exempt from filing Form 1099-misc. Form 1096 must accompany Form 1099-misc when it is filed. Form 1096 is a summary of the information contained on all Forms 1099-misc.
Items you will need
- Form 1099-misc
- Taxpayer information for the non-profit organization
- Form 1096
Prepare Form 1099-misc
Complete the sections for the Payer's information and Payer's federal identification number using information for the non-profit organization. The federal identification number to be used is the non-profit's employer identification number, or EIN. Similarly, complete the sections for the Recipient's information and Recipient's identification number. The recipient's identification number is the individual's social security number or, in the case of a corporation, the corporation's EIN.
Complete boxes 1 through 7, as applicable. In the case of a non-profit organization, box 7 will report non-employee compensation paid to an individual or entity and box 4 will report federal withholding tax, if any. Additionally, a non-profit may report rent paid for the building they operate from in box 1.
Complete boxes 16 through 18 if state withholding tax was withheld from payments made to the individual or entity.
Write the non-profit organization's name, address and contact information on Form 1096. Enter the non-profit organization's EIN in box 1. Leave box 2 blank.
Enter the total number of Forms 1099-misc in box 3 and the total amount of federal withholding tax from those forms in box 4. The total amount of payments made to individuals or entities contained on Forms 1099-misc should be written in box 5. Place an "X" in the box for Form 1099-misc to complete section 6. Only check box 7 if this is the final Form 1096 the non-profit organization will file. Sign and date Form 1096.
File Form 1099-misc and Form 1096 by March 1st if filing paper forms via mail. If filing electronically, Form 1099-misc and Form 1096 can be filed until March 31st. Regardless of filing method, one copy gets sent to the IRS. Another copy gets sent directly to the individual or entity for whom the Form 1099-misc income is being reported.
Although Form 1099-misc is only required for payments over $600 to an individual or entity, it is recommended that Form 1099-misc be filed for anyone receiving payments from a non-profit organization for proper record keeping.
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