Split Tax Forms

Who Needs This Guide?
If you discover that a contractor had two different tax profiles in one tax year (e.g., new TIN after July 1) and want to issue separate 1099s to reflect that partial-year split, you’ll rely on these manual steps.

1. Add or Confirm the New Contractor Record

1. Navigate to Contractors
   From your Payer Dashboard, click Contractors.
2. Click “Add Contractor”
   Provide the contractor’s new legal name, TIN, and a unique email address.

   Tip: If the contractor only has one real address, try an email alias (e.g., [email protected]).

3. (Optional) Enter Payer-Provided Tax Info
   If you already have the updated EIN/SSN details, add them so the 1099 auto-populates that TIN. Otherwise, the 1099 will remain partially blank until the contractor or payer supplies it later.

2. Generate All 1099 Forms

1. Go to the 1099 Filing Dashboard
   Cclick Generate to create 1099 forms for all contractors.
2. Wait for the forms to appear
   You should now see two forms for this contractor:
   • Old TIN: Potentially showing all payments, including some from the latter part of the year.
   • New TIN: Possibly $0, unless you processed brand-new payables under that second record.

3. Manually Override 1099 Amounts

1. Open the old TIN’s 1099
   • Click Edit next to 1099-NEC total.
   • Subtract any portion that belongs under the new TIN.
   • Example: If the old TIN currently shows $60,000 for the full year, but you only want $40,000 for January–June, set it to $40,000.
2. Open the new TIN’s 1099
   • Click Edit next to 1099-NEC total.
   • Add the portion you just subtracted from the old TIN’s total (e.g., $20,000).
   • The final result might be $40k on the old TIN, $20k on the new TIN.

4. Confirm Filing Details & Submit

1. Check TIN/Name
   Make sure each 1099 has the correct TIN, name, and address for its portion of the year.
2. Resolve Needs Action
   If the TIN is still unverified or an address is missing, fill in the missing info or override to Ready if you’re sure.
3. Submit Both 1099s
   Follow your normal filing workflow. Each 1099 will be filed with the IRS under its respective TIN.