Search

Who Needs a 1099-Misc

Form 1099-Misc is for nonemployees who received payment. For year 2020 anyone who has received payment for services (and some products) of $600 or more, will need a 1099-Misc. There are exceptions but for now, let's focus on the most common individuals.


-Rent

-Awards and Prizes

-Income Payments

-Payment to attorneys

-Fishing boat proceeds and fish

-Crop Insurance proceeds


You will use Form W-9 to collect citizens of the U.S. tax identification number. That can be a social security number or individual tax identification number; in some instances an EIN. These can be requested electronically. In fact, QuickBooks Online has a feature that makes it very easy to do so.


Here is a link to information from the IRS about 1099-Misc https://www.irs.gov/instructions/i1099msc


It's best to start collecting the information well in advance of the January 31st filing deadline. In fact, I recommend, before issuing payment, collect the information needed on a W-9.


0 views

Recent Posts

See All

Uncertainty is certain

I have found myself feeling uneasy about the incredible changes society is facing and they only thing that seems certain is uncertainty. SBA loans, politics, grants, PPP, quarantine... none of it is e

© 2023 by Brazen Business Services