AI Form 1099 Processing & Data Extraction Software

Automating their processes with AI

Affinda has removed the laborious workload from our accounts staff, who now focus on quality assurance and management of any outliers.

- Nathaniel Barrs, CTO, PSC Insurance

95%

reduction in manual work

10×

more invoices processed with no added staff

Enhanced auditability and tracking of invoice approvals

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Customer satisfaction is always our top priority, and Affinda has helped us achieve that by eliminating phone calls, manual handling, and delays.

- Jorg Both, Head of Business Systems, Northline

120,000

proof of delivery documents processed annually

82%

of documents straight-through processed in the first weeks

Automatic validation of documents against ERP system

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Two recruitment specialists reviewing a list of candidates

Affinda's ongoing improvements in its AI models demonstrate its innovative approach in Document AI.

– Michael Zhao, AI Product Manager, SEEK

High accuracy parsing across multiple languages
Improved customer experience thanks to better structured data
Stronger compliance with international data security and software standards

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Affinda’s support and expertise were invaluable… The experience working with Affinda was excellent.

- Nick Tran, Business Analyst, StateCover Mutual

300,000

documents processed annually

80

different document types

60%

Enhanced auditability and tracking of invoice approvals

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Logistics manager reviewing paperwork onsite

The results have spoken for themselves. I recommend Affinda to anyone looking to enhance their product or business with AI capability.

- Steve O’Keeffe, CTO, Felix

76%

reduction in manual data input

30%

reduction in compliance data errors

85,000

compliance documents processed annually

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Frequently asked questions

What is form 1099 processing?

Form 1099 processing is the workflow businesses use to capture, validate and manage data from 1099 forms â€“ including payer details, recipient information, payment amounts and tax withheld. Our AI form 1099 processing software automates this process to reduce manual effort and errors. It ensures contractor payments are tracked accurately, tax reporting is compliant, and data flows correctly into your accounting, payroll and tax systems.

What is form 1099 data extraction?

Form 1099 data extraction is the process of reading a 1099 form and capturing critical data points â€“ including payer and recipient details, payment amounts, tax withheld, year and reference numbers. Affinda's AI automates form 1099 data extraction across NEC, MISC and other variants, transforming unstructured tax documents into structured, accurate data that flows directly into your accounting, payroll and compliance systems.

What is form 1099 extraction?

Form 1099 extraction is the automatic capture of key data from 1099 forms using AI. Our form 1099 extraction software combines reading order models, OCR, LLMs, RAG and more to convert payment and tax information with high accuracy and faster processing times.

What is a form 1099 parser?

A form 1099 parser is software that reads and extracts data from 1099 forms automatically. It converts tax documents into structured, machine-readable formats your systems can use. Our AI form 1099 parser adapts to both NEC and MISC variants, handling different layouts and data structures while delivering output in exactly the format your accounting, payroll and compliance systems require.

What is form 1099 line extraction?

Form 1099 line extraction captures structured payment data from your 1099 forms â€“ including multiple payment entries, tax amounts and contractor details â€“ while preserving the relationships between each line item. Our AI interprets grouped payment data with contextual understanding, handling everything from simple payment entries to complex multi-page forms with nested data structures.

What data fields can Affinda's AI form 1099 processing software extract?

Affinda's AI form 1099 processing platform can capture data from any field on a 1099 form. Standard data fields include:

Payer Information

Payer Name: Full legal name of the business or individual making the payment.
Payer TIN / EIN: Taxpayer Identification Number or Employer Identification Number of the payer.
Payer Address: Complete street address, city, state and ZIP code of the payer.
Payer Phone Number: Contact phone number when provided on the form.

Recipient Information

Recipient Name: Full name of the contractor or service provider receiving payment.
Recipient TIN / SSN: Tax identification number or Social Security Number of the recipient.
Recipient Address: Complete mailing address of the payment recipient.
Account Number: Optional account identifier used by the payer for tracking purposes.

Payment & Tax Data

Nonemployee Compensation (Box 1 â€“ NEC): Total payments made to independent contractors on 1099-NEC forms.
Rents / Royalties / Other Income (MISC): Payment amounts reported in boxes 1, 2, 3 and other income categories on 1099-MISC forms.
Federal Income Tax Withheld: Amount of federal tax withheld from payments, when applicable.
State Tax Withheld: State-level tax withholding amounts and related data.
State Income: Income amount subject to state taxation.
Fishing Boat Proceeds / Medical Payments / Substitute Payments: Specialized payment categories captured from MISC variants.

Form Details

Tax Year: The calendar year for which the 1099 form applies.
Form Type: Identification of whether the document is 1099-NEC, 1099-MISC or another variant.
Form Reference Number: Unique identifying number or code printed on the form.
FATCA Filing Requirement: Checkbox indicator for Foreign Account Tax Compliance Act reporting.
State Identification Numbers: State-specific payer ID numbers when included.
Second TIN Notice: Checkbox indicator for IRS notification requirements.

Need custom fields or specialized data points? Simply define them in the UI or describe them in natural language and Affinda will extract and structure them automatically.

What file types does Affinda's AI form 1099 processing solution support?

Our AI agents can process any file type. Supported file types include PDF, JPG/JPEG, PNG, TIFF, DOC/DOCform 1099 (Word), form 1099LSform 1099 (Excel), HTML and Tform 1099T/CSV.

How does Affinda process form 1099s and form 1099 data?

Affinda's AI agents read, extract and validate form 1099 data. Our platform is intuitive to set up and easily integrates into your systems. Simply:

Upload your 1099 forms via drag-and-drop, email or API.
Configure business logic to match your organization's rules and workflows.
Let Affinda check and validate extracted data against your business logic and accounting, payroll, tax or compliance systems to ensure accuracy.
Access structured form 1099 data directly within your systems.

The result? Faster, more accurate form 1099 processing with minimal manual input.

Can Affinda extract data from scanned or image-based form 1099s?

Yes. Our AI form 1099 processing platform combines OCR with retrieval augmented generation (RAG), LLMs, agentic workflows, proprietary reading order algorithms and more, to automatically detect and process data from scanned or photographed invoices (PDF, JPG, PNG). Even low-quality images are automatically enhanced for reliable data capture and processing.

What language does Affinda's AI form 1099 automation platform support?

Our AI form 1099 processing platform can automatically detect and process form 1099s in 50+ languages, including multilingual form 1099s containing more than one language. Supported languages include: Afrikaans, Albanian, Amharic, Arabic (Standard, Egyptian, Sudanese, Algerian, Moroccan, Levantine), Bahasa Indonesian, Bengali, Bhojpuri, Bulgarian, Burmese, Chinese (Mandarin [PRC/Taiwan], Cantonese, Wu, Min Nan, Jinyu, Xiang, Hakka), Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Gujarati, Hebrew, Hindi, Hungarian, Italian, Japanese, Javanese, Kannada, Korean, Latvian, Lingala, Lithuanian, Macedonian, Malayalam, Marathi, Nepali, Norwegian, Odia, Persian (Farsi), Polish, Portuguese, Punjabi (Western and Eastern), Romanian, Russian, Slovak, Slovenian, Somali, Spanish, Swahili, Tagalog, Tamil, Telugu, Thai, Turkish, Ukrainian, Urdu, Vietnamese, Yoruba.

Does Affinda integrate with accounting, payroll, tax and compliance systems?

Yes. Our platform connects with 400+ downstream systems, including leading accounting, payroll, tax and compliance platforms. You can build no-code integrations using our AI integrations agent, or develop custom connections using our APIs â€“ whatever suits your form 1099 processing workflow best.

What are some examples of AI form 1099 workflow automations?

AI form 1099 processing automates tax and compliance workflows across departments including:

Tax and Compliance Teams: Accelerate year-end reporting and ensure compliance by extracting payer details, recipient information, payment amounts and tax withheld from both NEC and MISC forms. Business-rule validation flags discrepancies like missing TINs, incorrect payment totals and duplicate submissions before filing deadlines.
Accounting and Payroll: Verify contractor payments with precision by automatically matching 1099 data to payment records, eliminating manual cross-checks and reducing audit risk.
HR and Vendor Management: Maintain accurate contractor records by feeding structured 1099 data into your HR and vendor management systems, simplifying payment tracking and compliance monitoring.
Finance / ERP Teams: Push validated 1099 data directly into your financial systems to improve reconciliation speed, reporting accuracy and operational scalability.

What is a form 1099 OCR data extractor?

A form 1099 optical character recognition (OCR) data extractor scans and captures information from 1099 forms, regardless of format or variant. Upload your tax documents in PDF, JPG or PNG formats. The OCR technology converts the documents into a text layer, ensuring all text â€“ even from scans, photos or handwritten entries â€“ is captured accurately. Affinda's AI models then identify and extract critical fields such as payer and recipient details, payment amounts, tax withheld, year and reference numbers, transforming them into structured, actionable data.

This automation eliminates manual data entry, reduces compliance risks and accelerates year-end reporting. Once the form 1099 data is captured and structured, our AI form 1099 processing pipeline applies validation and post-processing to enable seamless integration with accounting, payroll, tax and compliance systems.

Organizations across accounting, payroll, HR, tax and financial services rely on Affinda's AI for their contractor payment verification, tax reporting and compliance processes, streamlining workflows and improving accuracy.

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The AI platform for form 1099 processing

How to automate form 1099 processing with Affinda's AI

Upload your 1099 forms, your way

Watch as it extracts your form 1099 data

Automatically route the data to your systems

Extract any information from any document, fast

Create models in seconds

Cleanse and transform data

Apply business logic

Affinda's AI reads, understands and extracts data from any 1099 form or document

Pathway 1: Use our AI integrations agent

Pathway 2: Write your own code

Get AI agents to process your 1099 forms

Automate form 1099 processing with 99%+ accuracy

See ROI in weeks, not months

AI that instantly learns from your form 1099 and adapts

Easy integration, zero disruption

Configure your form 1099 model, customize and maintain control

Enterprise-grade security

Combine the best of artificial and human intelligence

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Upload your documents

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Automating their processes with AI

95%

10×

120,000

82%

300,000

80

60%

76%

30%

85,000

Try AI form 1099 processing for free

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