How to Find the 1099 Forms You Need for 2024

Tax season is approaching, and as an accountant for art galleries, I know one of the biggest challenges for gallery owners handling DIY bookkeeping is figuring out exactly which 1099 forms they need. Let's break down this process and make it manageable, especially if you're using QuickBooks to track your finances.

Understanding Which 1099s Your Gallery Needs

First things first: your art gallery likely needs to file 1099-NEC forms for artists who you've paid $600 or more during the year. This includes commission payments, artwork purchases, and other services. While QuickBooks bookkeeping makes tracking these payments easier, you'll still need to know what you're looking for.

Running the Right Reports in QuickBooks

The secret to finding all your required 1099 forms lies in your QuickBooks reports. Navigate to the Vendors menu and look for the "1099 Summary" report. This report is gold for galleries handling their own bookkeeping – it shows you exactly who you've paid and how much. But here's the catch: you need to make sure your vendors (artists) are properly marked as 1099 contractors in your settings.

Common Mistakes to Watch For

When doing DIY bookkeeping, galleries often miss payments that should be included on 1099s. Remember to include payments made through:

• Regular checks

• Bank transfers

• Digital payment services

• Credit card payments for purchases directly from artists

The W-9 Connection

Before you can file any 1099s, you need W-9 forms from your artists. If you're missing any, now's the time to collect them. QuickBooks can help you track which artists you have W-9s for by attaching them to vendor profiles. Make this a part of your standard onboarding process to avoid last-minute scrambling.

Checking Payment Thresholds

In QuickBooks, run a Vendor Payment report for the entire year. Sort by payment amount to easily identify who crosses the $600 threshold. Remember, this total includes all forms of payment throughout the year. As someone who regularly helps with bookkeeping for art galleries, I've seen how easy it is to miss payments when they're spread across different months.

Digital vs. Physical Forms

While many galleries still receive physical 1099 forms, you can also file digitally. QuickBooks offers e-filing services that can streamline this process. If you prefer physical forms, they can be ordered directly from the IRS website or purchased from office supply stores.

Special Considerations for Art Galleries

Art galleries have unique situations that affect 1099 reporting. Consider whether you need to report:

• Installation services

• Framing work

• Art handling and transportation

• Conservation services

Getting Your Timing Right

Start this process well before the January 31 deadline. As an accountant for art galleries, I recommend beginning your 1099 preparation in early January. This gives you time to:

1. Verify all payment records

2. Collect missing W-9s

3. Confirm artist contact information

4. Review any special payment arrangements

Using QuickBooks to Stay Organized

Make your DIY bookkeeping easier next year by setting up your QuickBooks system properly now. Create custom fields for tracking 1099-eligible payments and attach relevant documents to vendor profiles. This organization will make next year's 1099 process much smoother.

When to Seek Help

If you're feeling overwhelmed with your QuickBooks bookkeeping or unsure about your 1099 obligations, it's okay to ask for help. Many galleries find that working with an accountant who specializes in art galleries can save time and prevent costly mistakes, especially during tax season.

Looking Ahead

Once you've identified and prepared all your necessary 1099 forms, create a checklist for next year. Include reminders to:

• Collect W-9s from new artists immediately

• Review payment categorization quarterly

• Update vendor information regularly

• Track payment methods consistently

Final Thoughts

Finding the 1099 forms you need doesn't have to be stressful. With proper QuickBooks bookkeeping and attention to detail, you can handle this important task efficiently. Remember, staying organized throughout the year makes tax time much easier. If you need guidance, don't hesitate to consult with an accountant who understands the unique needs of art galleries.

Keep this guide handy as you prepare your 1099s for 2024, and remember that good DIY bookkeeping practices make every tax season easier than the last.