Crop Insurance Agent Resources

2021 - 1099 FAQs

Q: When will the 2021 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 2021 but was never received in 2021 and was reissued in 2022, will the original check amount be on the 2021 1099? The check was placed in the mail prior to year-end.
A:
Yes, the original check amount will be on the 2021 1099 per IRS rules. The 2022 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 2021 1099 are payments made from a Crop Year 2020 claim paid in calendar year 2021 (i.e. in this instance, the first check was issued in 2021).

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

 

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