E-File Magic 1099 Software – Blog

One big question we get a lot here at E-File Magic is what to put in box 3 of Form W-2G.  Box 3 is type of wager.  The IRS prefers that you use a specified code for the wager you have issued the W-2G for.  The following is the type of wager and corresponding code number:

• Horse Race Track use 1
• Dog Race Track use 2
• Jai-alai use 3
• State Conducted Lottery use 4
• Keno use 5
• Bingo use 6
• Slots use 7
• All other Gambling Winnings use 8

As you can see, the code system is pretty easy to use once you know which numbers correspond with the gambling type.

Download E-File Magic Software and get started on your W-2G filing today!

Here at E-File Magic, we get this question a lot, “Why can I only see the last four digits of my recipients Tax ID Number or Social Security Number when I print the forms?”  The simple answer is, the IRS allows it.

The IRS is testing to see if truncating Tax ID numbers is worth doing in the long run.  Personally, I think truncating Tax ID numbers is a good program, it protects your recipients sensitive information from getting into the wrong hands.

By default, E-File Magic Software truncates the Tax ID Numbers on printed forms.  But, if you want to show the Tax ID numbers, E-File Magic Software will allow you to do so.  Here’s how, in the software click on Config, and click on Mask Recipient TaxID.  The box that is high lighting the little picture to the left of the wording will go away, and this will tell you that your recipients Tax ID Number is no longer being masked.  When you are ready to print your forms, you will see all of the Tax ID Number.

If you haven’t started working on your 1099 Forms yet, get started today!  Download E-File Magic Software!!

Although, this is technically a blog about Tax Forms specifically Form 1099 and similar forms.  I wanted to let you know about the 2012 Standard Mileage rates as you prepare for your taxes.

The standard mileage rates are;

• 55.5 cents per mile for business miles driven
• 23 cents per mile for medical or moving miles
• 14 cents per mile driven for charitable organizations

Okay, so now that the mileage rates have been covered, lets talk about the most important part when you claim these miles on your tax returns, make sure you log the miles!!

The IRS, in recent years, has been targeting people who claim miles, because well, most people are fairly relaxed about logging their miles.  You should log everything about your trip; where you went, when  you went there, and how many miles it took to get from point A to point B.  Keeping an accurate and thorough log will help you in the long run, and hopefully keep the auditors away!

If you found this blog helpful, you should download E-File Magic Software for you1099 needs!  It’s extremely easy to use!

I know, I know, it’s November!  We shouldn’t be worried or even thinking about IRS Deadline dates until at least mid-December (or late January for some of you).  Well, I’m here to tell you, if you get your forms done early this year, you wont be pulling your hair out on January 30th, trying to get Tax-ID numbers from people you employed to do some work back in March.

So, remember, you must send out your 1099′s by January 31st to all of your recipients. And you must e-File all of your forms by April 1st, 2013.  Now, these dates are the IRS FIRM deadline dates.  To utilize E-File Magic services, we will most likely request that all forms be transmitted to us a few days early, we will post our deadlines later in the tax season.

2013 is the year to not procrastinate!  Download E-File Magic Software and start working on your 1099 Forms!

Quite possibly the most exciting feature to the 2012 E-File Magic Software is the ability to import Quickbooks Files to create 1099s!  Not only is this development exciting, importing a Quickbooks file to E-File Magic Software is extremely easy to do!

All you need to do is go to the Import Recipients screen in the software and follow the 6 steps.  We also added a tutorial on our website!

Download E-File Magic Software today and get started importing your Quickbooks files to create 1099s!

For those of you anxiously waiting to start working on your 1099 Forms for the upcoming tax season, you’re in luck! The new version of the E-File Magic Software is now available for downloading.  The software looks and works the same, with the new feature of being able to import your Quickbooks file directly the software!

The updated Excel Template is also available for those of you who prefer using our E-File by Excel Service.

Avoid the end of January rush and get started on your 1099′s right away!

Click here to download the 2012 E-File Magic Software!

If you haven’t heard yet.  E-File Magic is in the middle of our busy season (hence why you haven’t seen a blog post in a while, I bet you’ve missed me! )  Well today I received an email from an extremely happy customer.  She said she was having a hard time importing her recipient data from an Excel Sheet to the E-File Magic Software. She decided she would do some research on our website to see if she could find a tutorial on how to do it.  Low and Behold she found our Video on Importing Recipient Information.  She said it was very easy to follow and she was able to import her Excel file right away after watching the video.

I enjoyed the feedback and I wanted to share it with all of my loyal E-File Magic clients that our videos really are excellent tutorials if you aren’t sure how to do something in our software.

Speaking of software, you should download our 1099 Software right now!!! The IRS deadline of January 31st is fast approaching!!

Form 1098 is pretty self explanatory. You need to use Form 1098 to report Mortgage Interest of $600 or more received during the year from an individual and you receive in the course of your trade or business.  The only time you do not need to file Form 1098 is for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a coborrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals.  According to the IRS, “A mortgage is any obligation secured by real property.”  And that basically sums up Form 1098…

Download E-File Magic’s Form 1098 Software today!

This morning, when I looked at the weather report it said that there was a 100% chance of rain.  So the odds are pretty good that it will be pretty wet in the Pacific Northwest today.  And thanks to new laws established by the IRS, the odds are greater that you will receive a 1099-DIV this year.

In general a 1099-DIV needs to be filed for each person; you have paid dividends and other distributions on stock of $10 or more, you have withheld and paid foreign tax on dividends and other distributions on stock, you have withheld any federal income tax on dividends under the backup withholding rules, or you have paid $600 or more as part of a liquidation.

It looks like more people will be receiving form 1099-DIV this year.  The IRS is now requiring that Exempt-interest dividends from a mutual fund or other regulated investment company be reported on Form 1099-DIV instead of traditionally where it has been reported – Form 1099-INT.

Download E-File Magic 1099-DIV Software!!

In a tax class many years ago, my professor said that many schools do not know how to fill out form 1098-T correctly.  It’s a shame really, but most schools have thousands of students and at times, information about tuition paid can get a little jumbled.

According to the IRS, you should furnish a 1098-T if you are an eligible educational institution.  You must file a 1098-T for each student enrolled and has a reportable transaction.  You must also file a 1098-T form if you are an insurer and have made reimbursements or refunds of qualified tuition and related expenses.

Not all students qualify for a form 1098-T.  If there has been no academic credit for a class taken, a non-resident student, if the students tuition is completely paid by scholarships or grants, or if the student isn’t paying for school, but their employer or a government entity is paying for their schooling instead.

For the applicable students, all qualifying tuition must be reported.  Tuition that is not considered to be qualifying; amounts paid for any course or other education involving sports, games, or hobbies, unless the course or other education is part of the student’s degree program or is taken to improve job skills, and charges and fees for room, board, insurance, medical expenses, transportation, and similar personal, living, or family expenses.

Phew! I hope that clears up some of the confusion a bit.  Hopefully my old tax teacher will be proud.

Working in E-File Magic’s 1099 Software is a perfect way to spend a rainy afternoon! Download the 1098-T version today!