Tax1099 Reviews: Is It Worth Using for 1099 E-Filing?
Tax1099 is one of the most widely-used IRS-authorized e-filing platforms for 1099 forms, W-2s, and other tax documents. Over 500,000 businesses trust it for their filings, and it's won awards like the Accountex User Favorite and FinTech Breakthrough Award for Best 1099 Tax Software.
But awards don't tell the full story. I dug through hundreds of user reviews across Capterra, Trustpilot, GetApp, and Slashdot to give you the real picture—what works, what doesn't, and whether Tax1099 is right for your business.
What Tax1099 Does
Tax1099 is an IRS-authorized e-filing platform that handles 1099 forms (NEC, MISC, INT, K, DIV, R, S, and more), W-2s, 940/941/944/945 payroll forms, ACA forms, and state filings. The platform integrates with QuickBooks Desktop, QuickBooks Online, Xero, Bill.com, FreshBooks, Sage, NetSuite, and more.
Core features include:
- Bulk upload capability for thousands of forms at once
- Real-time TIN matching against IRS database
- USPS address validation
- 256-bit bank-grade encryption
- Combined Federal/State Filing (CF/SF) support
- Print and mail services for recipient copies
- Free electronic delivery to recipients
- Team management and user access controls
- Four years of secured data storage
The three-step e-filing process is genuinely simple: select your form and enter details, verify accuracy, and submit to the IRS. You get real-time status updates as your submissions are processed.
Tax1099 Pricing
Tax1099 uses a pay-per-form model without forcing you into bundles—you only pay for what you need. Here's the breakdown:
| Plan Type | Annual Fee | Per-Form Cost | Best For |
|---|---|---|---|
| Essential (Pay as You Go) | $0 | ~$2.25-$2.90/form | Seasonal filers, low volume |
| Performance | $129 | Lower per-form fees | Mid-volume filers |
| Premier | $799 | Lowest per-form fees (~$0.68+) | High-volume enterprises |
For context, payroll forms like 940/941 start at around $1.34/form. At higher volumes, costs can drop below $1 per form.
Add-on costs to watch for:
- Print and mail services for recipient copies
- State filings (non-CF/SF participating states)
- TIN matching services
- Bulk recipient portals
One thing users consistently mention: the tiered pricing model lets you scale without committing to a bundle you don't need. But the pricing schedule can be confusing, and some users have reported unexpected costs from software errors or duplicate submissions.
What Users Love About Tax1099
Based on reviews across multiple platforms, here's what works:
Ease of Use: The platform is consistently described as user-friendly with a clean interface. One reviewer noted it's "not one of those apps that makes you want to pull your hair out." Data entry is straightforward, and the software provides clear error messages when something's missing.
Integration Quality: The QuickBooks integration is particularly well-reviewed. Users can export data directly from their accounting software, upload via Excel templates, and avoid manual data entry. The integration with Xero, Bill.com, and other platforms also gets praise.
Recipient Management: Prior year vendors are saved automatically, reducing data entry for repeat filers. You can copy recipients across multiple payers—useful for accounting firms or holding companies managing multiple entities.
Pay-Per-Use Flexibility: Unlike competitors with bundled pricing, Tax1099 lets you pay only for what you file. One reviewer called it a "win win" for firms with unpredictable filing volumes.
Electronic Delivery: Emailing 1099s to recipients is free, which saves on mailing costs. You can also use postal mail through the platform for a reasonable fee.
What Users Complain About
And now the stuff Tax1099 doesn't want you to see in their marketing:
Customer Support Issues: This is the #1 complaint across review sites. Multiple users report that support has deteriorated over time. Live chat has been replaced with AI chat support that "has yet to help me troubleshoot any problems." Phone support is reportedly difficult to access, and email responses are often generic. During peak tax season, this becomes a serious problem.
Bugs and Reliability: One long-term user described it as "the most unreliable and buggy system I've ever used." Specific complaints include login issues late at night, address validation bugs, and confusing error messages about EINs. For a platform handling tax compliance, reliability is critical.
Data Integrity Problems: The most alarming reviews involve data corruption. One user reported that a site crash corrupted 2,800 recipient records, causing TIN match failures and $35,000+ in legal fees battling IRS penalties over several years. Another mentioned that the Social Security Administration had issues with W-2 submissions through Tax1099.
Navigation Quirks: Some users find copying vendors between payers cumbersome. The input fields for entering recipient info have been criticized—clicking on the SSN/EIN field doesn't position the cursor correctly. Minor issues, but annoying when you're processing hundreds of forms.
Form Status Delays: Several users reported forms stuck in "pending" status for extended periods with poor communication about why.
Tax1099 vs. Alternatives
How does Tax1099 stack up against competitors?
| Platform | Starting Price | Best For | Key Difference |
|---|---|---|---|
| Tax1099 | ~$2.25/form | Mid-to-large businesses needing integrations | Most accounting software integrations |
| 1099Online | $3.49/form (1-10), $0.69/form (1000+) | Budget-conscious small filers | Lower volume pricing, free re-filing for rejections |
| TaxBandits | ~$3.49/form | Small businesses wanting phone support | Better customer service availability |
| Avalara 1099 (Track1099) | Varies | Automated W-9 collection workflows | Strong automation features |
| IRS IRIS (Free) | $0 | Very small filers (under 10 forms) | Free but manual, limited support |
If you're pulling data from QuickBooks or Xero and need enterprise-level features like role-based access and bulk TIN matching, Tax1099 is a solid choice. If you're a small filer doing 5-20 forms once a year, the interface might feel like overkill, and alternatives like 1099Online could save you money.
Who Should Use Tax1099
Good fit for:
- Accounting firms managing multiple clients and entities
- Businesses already using QuickBooks, Xero, or NetSuite
- Companies with 50+ forms per year who need automation
- Organizations requiring team access controls and workflow management
- Anyone filing 1099-NEC, MISC, plus W-2s and payroll forms in one platform
Not ideal for:
- Businesses with only a handful of 1099s to file
- Anyone who needs responsive phone support during tax season
- Users uncomfortable with occasional bugs and workarounds
- High-stakes filers who can't afford any data integrity issues
The Bottom Line
Tax1099 is a capable, feature-rich platform that handles 1099 e-filing well for most users. The integrations are strong, the pay-per-form model is fair, and the core filing process is straightforward.
But the customer support issues are real, and the reports of data problems—while not universal—are concerning enough that you should have a backup plan during tax season. Export your data regularly, double-check everything before submitting, and don't wait until the last minute when support queues are longest.
For most businesses doing volume 1099 filing with accounting software integration needs, Tax1099 is worth trying. Just go in with realistic expectations about support responsiveness.
Related: More Payroll and Tax Software
If you're also evaluating payroll solutions for W-2 employees (not just 1099 contractors), check out our best payroll software for small business roundup. We also have detailed reviews of Gusto, including Gusto pricing breakdowns and comparisons like Gusto vs ADP and Gusto vs Paychex.