ACH (Automated Clearing House) payments are not typically reported on Form 1099. Form 1099 is used to report various types of income paid to individuals, such as compensation, interest, dividends, and miscellaneous income, but ACH payments themselves are not specifically reported on this form.

If an individual or business receives payments via ACH that are reportable on Form 1099 (e.g., payments for services rendered, rent, royalties, etc.), then those payments should be included on the appropriate type of Form 1099. The payer is responsible for issuing Form 1099 to the recipient if the total payments made during the tax year meet or exceed the reporting threshold set by the IRS for the specific type of income.

For example…
– Form 1099-MISC is used to report miscellaneous income, including payments made to independent contractors, freelancers, and service providers.
– Form 1099-INT is used to report interest income.
– Form 1099-DIV is used to report dividends.
– Form 1099-NEC (Nonemployee Compensation) is used specifically to report payments made to independent contractors and freelancers for services rendered.

Both payers and recipients need to ensure that all reportable income is accurately reported on the appropriate tax forms to comply with IRS regulations. If you are unsure about whether specific payments should be reported on Form 1099, it’s advisable to consult with a tax professional or accountant for guidance tailored to your circumstances.