2 years, 2 months ago
I paid someone over $600 from my personal account in 2009. They want this to show as income when they are doing their taxes...
Do I need to issue them a 1099? Or are those only business-to-individual? Would a receipt do?
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M$1 Answer
Generally speaking:
If you paid them for services rendered (versus purchasing something), and
It was for your business versus something personal (design a logo vs paint your house), and
They are not a corporation, then
You need to issue a 1099 if it's more than $600.
The above is a VERY general statement.
For a detailed IRS explanation, and easy to read, see the IRS links below. This is their website and not live chat or a phone number. You will not be asked to disclose any information in exchange for answers to your questions. You just have to read through the guidelines.
If you paid them for services rendered (versus purchasing something), and
It was for your business versus something personal (design a logo vs paint your house), and
They are not a corporation, then
You need to issue a 1099 if it's more than $600.
The above is a VERY general statement.
For a detailed IRS explanation, and easy to read, see the IRS links below. This is their website and not live chat or a phone number. You will not be asked to disclose any information in exchange for answers to your questions. You just have to read through the guidelines.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
Thanks.
Just to add some info...
A receipt would be something they issue you for your payment, so that won't help. In general, they do not have to have a 1099 in order to report income. They just include it in e.g. their schedule A, just as they would have if it had been under $600. There is no requirement on them to file a 1099 (they anyhow would not include a 1099 in their filing). However, if this was a business expense for you which you claim on your own schedule A (or on corporation tax return) you'd probably need to issue a 1099, and file it with your tax return.
Normal disclosure - this is for information purposes only. You should ask a tax professional to get a definitive answer on which you should base your actions.