Crop Insurance Agent Resources

2019 - 1099s

Q: When will the 2019 1099s be mailed?
A: 1099s will be mailed no later than the last week of January.

Q: Will a 1099 be issued for all amounts paid?
A:
Yes, however per IRS rules any 1099 amount under $600 does not need to be issued.

Q: If a check that was issued in calendar year 2019 but was never received in 2019 and was reissued in 2020, will the original check amount be on the 2019 1099? The check was placed in the mail prior to year-end.
A:
Yes, the original check amount will be on the 2019 1099 per IRS rules. The 2020 1099 will show the original check voided and the reissued check will have a net reported amount of zero. How the producer reports this is an issue to discuss with a tax preparer as some who report on a cash basis may not need to report the same number as reflected on the 1099.

Also included on the 2019 1099 are payments made from a Crop Year 2018 claim paid in calendar year 2019 (i.e. in this instance, the first check was issued in 2018).

Q: Will the 1099 show the break-down of the loss between a Revenue loss and Harvest loss?
A: No, the 1099 will not show the break-down between Revenue loss and Harvest loss. This is due to the complexity of the tax regulations, the insured should consult with their tax preparer.

Q: Why does the 1099 for contract adjusters show all income and expenses paid?
A:
The full amount on the 1099 will be reported to the IRS; it’s up to the adjuster to offset their income with their expenses.

Q: Will the USDA Disaster Relief payment be reported on the 1099?
A:
 Yes, it is required to include the USDA Disaster Relief payment on the 1099-Misc form under Box 3 - Other Income.

Q: Is there detail included with the 1099?
A:
Yes, on the backside of the 1099.

 

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