In this latest installment of the Greenshades Year-End Power Sessions, we zeroed in on one of the most complex areas of year-end reporting: the 1099 series.
Led by Kieran O’Connor (Director of Managed Services) and hosted by Mandy Haberkamp (Director of Demand Generation), this session was packed with regulatory updates, practical breakdowns, and compliance best practices to help you tackle 1099s with confidence.
⚠️Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization’s internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.
You can watch the full session here:
There’s more to 1099 reporting than just selecting the right form — especially in light of 2025’s updated rules and shifting thresholds. Here are the biggest takeaways from the session:
The 1099-K Threshold Is Reinstated
Recent legislation reversed a proposed change, bringing the threshold back to its original standard.
Golden Parachute Payments Have a New Home
Updates to form structure mean these payments now appear on a different form than in previous years.
$600 Threshold Still Applies for NEC (For Now)
This familiar threshold isn’t changing just yet—but expect an update soon.
Mandatory E-Filing Rules Tightened
Even small organizations may now be required to e-file.
The session broke down the three most common 1099 forms and when each should be used.
Used for miscellaneous payments not related to services, this form is a catch-all for several income types.
Designed for service-based payments, this is the go-to form for nonemployees and freelancers.
This form is issued by payment platforms—not employers—for qualifying transactions.
Understanding who should issue which form—and when—is essential to avoid duplicate reporting.
Accurate tax identification data is foundational to successful filing.
New rules under OBBBA introduce reporting for tips and qualified overtime, but 2025 is a transition year.
Contractors still need visibility into their year-end earnings, even if not itemized on tax forms.
While the NEC, MISC, and K forms are most common, others may apply depending on your industry.
The CF/SF program simplifies multi-jurisdiction reporting, but participation varies.
Key federal dates for tax year 2025 to keep in mind:
These issues continue to cause IRS rejections year after year.
If you need more time, follow the IRS rules closely.
Corrections must follow the method of your original submission.
| Question | Answer |
|---|---|
| Will these 1099 changes be reflected in Greenshades import templates? | Yes. Any form or box changes for 1099s are reflected in the Greenshades 1099 import templates to support accurate filing. |
| Can TIN validation be done through Greenshades before January 1? | Yes. Greenshades expects TIN validation to be available before January 1, as year-end forms are opened in phases. This allows customers to begin validating TINs ahead of filing deadlines. |
| Does Greenshades use the IRS TIN matching service? | Yes. Greenshades uses the IRS TIN matching service to validate TINs during year-end processing, helping reduce rejections and penalties caused by mismatched or invalid information. |
| Why might a vendor pass IRS TIN matching but still show an error in Greenshades? | Greenshades uses the IRS TIN matcher; if discrepancies still appear, it may be due to formatting or data-specific issues. These cases are best reviewed directly with Greenshades Support so the specific scenario can be evaluated. |
| Are medical and healthcare payments on the 1099-MISC inclusive of insurance premiums? | No. Medical and healthcare payments reported on the 1099-MISC generally include payments for services, not insurance premiums. |
| How is attorney reporting handled on 1099s? | Attorney reporting falls into two categories: legal service fees of $600 or more are reported on Form 1099-NEC, while gross proceeds paid in connection with legal services are reported on Form 1099-MISC. Using the correct form is important to avoid IRS rejections. |
| Can Greenshades help reduce the need for corrections after filing? | Yes. Greenshades validates data prior to submission and automates much of the correction process when needed, helping reduce errors before IRS deadlines and supporting proper corrected filings when required. |
| When will 1099 Excel templates be available? | Greenshades is opening year-end forms on a rolling basis, with remaining 1099 forms and templates expected to be available over the coming weeks. Customers will be notified as they become available. |
| What are examples of “awards” that may require 1099 reporting? | Examples include cash prizes or awards such as contest winnings, promotional giveaways, or event prizes. If total awards paid to an individual exceed $600 in a tax year, they may be reportable on a 1099. |
Whether you’re managing 50 forms or 5,000, the Greenshades Year-End Forms platform helps you streamline the process from prep to print.
Plus, Greenshades is an IRS-approved transmitter, which means you don’t need your own TCC—we handle it for you.