Overview
See E-File IRS Forms 1099 With DoorLoop and Avalara for an overview of Form 1099 and which form applies to owners versus vendors.
To determine if you need to send a Form 1099 to your vendors, speak with your accountant first before filing. Refer to the IRS Instructions for Forms 1099-MISC and 1099-NEC for more information.
Note: Creating 1099s isn't available on Starter Plans. Consider upgrading to the Pro or Premium Plans to access this feature.
The Steps
Create 1099-NEC Forms for Vendors
Step 1 - Setup Your Vendors Correctly
The first step is to make sure the information you have for your vendors is up to date. Most importantly, you'll need to enter their current address and official taxpayer information.
To make sure your vendors have the correct information for their 1099s, click People > Vendors.
Find the Vendor you need to send 1099 forms to. Click the 3-dots to the right side of their names and select Edit.
On the Edit Vendor window, click the Federal Taxes tab. Then, select the option, "I want to send 1099 forms to this vendor."
A new section will appear. You will need to fill in the following information:
Taxpayer Name: Enter their official government name
Taxpayer ID Type: Choose between SSN, EIN, ITIN, and ATIN
Taxpayer ID: Enter the correct ID based on the ID Type
You'll see a toggle for Same as vendor's address. Toggle this on if the address information is the same as the address in the Address tab. If not, leave this toggled off and enter the address manually.
Click Save to finish.
You'll need to do this for every vendor you plan on sending 1099 forms to. Repeat the steps above for each one.
Step 2 - Exporting Your 1099 Reports
To export your 1099 reports for your owners, click on Reports on the main menu. Search and click the 1099-NEC report.
On the 1099-NEC report, a list of all available Vendors that have their Federal Taxes information filled in will be presented. Use the checkbox to select the Owners you want to send 1099 forms. Then click Export.
A new popup appears with Avalara information. There are several buttons you can click through here:
Learn more about Avalara — This takes you to the Avalara website, where you can learn more about the service and how it works. We recommend reading through this.
Create Account — Use this to first create your free Avalara account.
Download CSV — Use this to manually download the CSV file from DoorLoop. It generates one CSV file containing all your Owners' information.
Click Close to complete this step in the process.
Step 3 - Avalara.com
This step now requires that you go back to Avalara. Sign in to your account using the 1099 & W9 Sign In button.
Tip: If a property has more than one owner, you'll need to file multiple times for the vendor to record that they did work for each of those owners.
On the Avalara 1099 welcome page, login. Then you’ll see the option to choose which form you want to start using. Select the option for 1099s.
You will now see an Overview page. Click the "1. Add New Payor" tab. Your first step here is to Enter a New Payer Manually (which is you). The information you enter here is fairly standard.
Payer Name - Legal name, not DBA
Payer Federal ID Number - Required
Payer Second Name - Optional if you use a DBA name
Transfer Agent’s Name - Optional if applicable
Reference ID - Optional
Street Address, City, State, ZipCode, Country - Required
Email for Recipients’ Questions - Your email goes here
Phone - Your phone number
Click Save to complete adding the Payer.
The next step will ask you to either Upload from CSV to add all your recipients at once or Manually type in recipients one by one. For this example, we’ll be clicking Upload from CSV.
On the CSV import page, you’ll see several options here. Since we already download the CSV file, you can skip all the buttons for downloading the CSV templates and go straight to the button labeled, Select File.
You want to select the file labeled “_1099-NEC-202X_.csv” or similar.
After selecting the file, you’ll be back at the CSV Import page. Click Import CSV at the bottom of the page.
The next step takes you to the Forms Summary page. All we’re going to worry about here is the tab labeled Unscheduled. In that tab, you’ll see a list of all the recipients you will be sending 1099 forms to. Note the little icons next to each recipient that will let you know if they are set up correctly or not.
Green Check Mark: This means everything is good to go
Yellow Exclamation Point: Ok for E-File, but No Email Address
Red X: Error. Missing needed information
If everything looks good on your end, click the green button labeled, Next Step: Schedule E-File.
You should now see the E-File page with a list of options.
E-File to IRS: Enter the correct IRS due date
Postal Mail to Recipients: Print and mail yourself for free or choose to have them mail it for you for a fee.
Address Verification Service: You have the option to skip address verification or pay a small fee to have it verified.
TIN Matching Service: You have the option to skip TIN matching verification or pay a small fee to have it verified.
The next step is to enter your address for sales tax, Click Save Address after.
You’ll now be prompted to pay with your credit card. If you have tax-exempt status, use the Click here to upload your certificate button. When you’re ready to pay, click Pay Now.
After you pay, you can download the files for your records.
You're done now filing 1099s for your Vendors. Please note that if you have any accounting questions having to do with filing your 1099s, you'll need to ask your accountant.
Things to Consider
If a vendor has worked on multiple properties, You can create a separate 1099-NEC form for each of those properties or portfolios that they worked on that are owned by different owners. So if they worked on three different properties, which are owned by three different owners, you would file three different 1099-NEC forms for that vendor.
When you create the CSV file for 1099-NEC, create one for each owner. You can do this by filtering the 1099-NEC report based on Property or Portfolio for those owners.
