To automate 1099 processing, you can use Lido to extract payer details and income amounts from every 1099 your clients receive into one spreadsheet. Upload the forms, specify the fields you need, and Lido handles 1099-NEC, 1099-INT, 1099-DIV, and other variants in the same upload.
In this tutorial, we will walk you through automating 1099 processing using a sample file with three different 1099 forms.
Lido is the best way to automate 1099 processing because it reads every 1099 variant from any payer in one upload, with no template for each form type.
Before you start, make sure you have your 1099s saved as PDFs, images, or scanned copies.
If you don't have a Lido account yet, you can create one for free here.
Once you're logged in, create a New File.
Select the Extract Data button at the top of the sheet.
Upload your 1099s by dragging and dropping them into Lido, or click to browse. You can upload up to 100 files at a time. A single PDF can hold several different 1099 forms.
For the purpose of this tutorial, we will be using a sample PDF with a 1099-NEC, a 1099-INT, and a 1099-DIV. Enter the columns you want to extract: Form Type, Payer Name, Recipient Name, Tax Year, Income Amount, and Federal Tax Withheld.
Next, add extra instructions so each form type fills the same columns. We used: "Extract one row per 1099 form in the file. Form Type is the form name, such as 1099-NEC. Income Amount is Box 1 on Form 1099-NEC and Form 1099-INT, and Box 1a on Form 1099-DIV. Format amounts as plain numbers."
Keep Extract Multiple Rows per Document checked so each form in the PDF gets its own row. Once done, click Process All Files.
Review the extracted data to make sure everything looks correct. Lido returned three rows: 12,400 of nonemployee compensation, 286.14 of interest income, and 1,942.50 of ordinary dividends, each with the right payer.
Because every form lands in the same columns, you can total income by type or by client with a simple pivot table.
Click Export to Excel to download your 1099 data as a spreadsheet file. Use it to enter income into your tax software and to check that you have every 1099 a client expects.
Upload the rest of your clients' 1099s with the same setup. Lido can also extract each new 1099 automatically from a Google Drive folder, a OneDrive folder, or an email inbox that you connect in the Extract Data window.
Consolidated brokerage 1099s combine a 1099-INT, 1099-DIV, and 1099-B in one document that can run 30 pages or more. These tips keep the extraction manageable:
Extract the summary first: Set up columns for the summary page totals, such as total interest, ordinary dividends, qualified dividends, capital gain distributions, and federal tax withheld. Use Page Range to limit Lido to the summary pages.
Extract 1099-B sales as rows: In a second extraction, add columns like Description, Date Acquired, Date Sold, Proceeds, Cost Basis, and Wash Sale Loss Disallowed. Keep Extract Multiple Rows per Document checked so each sale becomes its own row.
Keep brokerages consistent: Each brokerage formats its statement differently. Lido reads each layout on its own, so the same columns work for every brokerage. Brokerage layouts are a good stress test when you compare software for extracting tax forms.
Processing 1099s your clients receive is only half the job. Businesses also have to issue 1099-NEC and 1099-MISC forms to the contractors they pay.
Start by collecting a Form W-9 from each contractor. Lido can extract the name, business name, tax classification, address, and TIN from your W-9s into one sheet, which gives you a clean contractor list for filing.
Then file through an e-filing service or the IRS's free Information Returns Intake System (IRIS). Businesses that file 10 or more information returns in a year are generally required to file them electronically.
For more tools, see our list of the best OCR software for tax document processing.
Now that you know how to automate 1099 processing, you can handle tax season's stack of 1099s without retyping a single form. If your firm also handles pay stubs and payroll registers, compare payroll extraction software options for that work.
Upload your 1099s to Lido, enter the fields you need as columns, and click Process All Files. Lido extracts every form into one spreadsheet you can export to Excel.
Lido extracts data from any 1099 variant, including 1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-R, 1099-B, and 1099-K.
Yes. Lido reads multi-page consolidated 1099s and can return the summary totals or one row per 1099-B sale.
Yes. Keep Extract Multiple Rows per Document checked, and Lido returns one row for each form in the PDF.
Yes. Lido extracts data from scanned and photographed 1099s as well as digital PDFs.
%20(1).svg)
.png){kind=small}
