1099 MISC question

[JenMO]

Can I put rent and non employee compensation on the same 1099, or do I need two separate forms?

[ChEAr$]

Can I put rent and non employee compensation on the same 1099, or do I need two separate forms?

No problem. Save paper.

[Beth]

1099 Needed?

I have a client who does some odd jobs throughout the year, all of which he reports. This year, he paid someone to assist him on one job-- payment less than $600 to the helper.

If I am reading correctly, he does not need to give that person a 1099, but still can deduct the payment--correct??

[Edward]

1099 Needed?

I've had clients in the past that may have had 15 separate payments to various sub-contractors with some receiving less than the 600.00:

a. After completion of the 1099's, I intentionally arrange the printing so
that the 600.00 & above are on the first printed part of the 1099, with the LESSER amounts coming at the end.

b. I then remove the LESSER amounts. Separate the sheets and discard the one normally sent to IRS; give the t/payer his copy and
mail the others with the lesser amounts to the sub-contractors.

c. By doing this we are assured that the sub-contractors report this income either on Sch C or line 21 of the 1040. Also the copy retained by the t/payer supports his deduction that he will be entering on the Schedule C.

This appears appropriate as part of our "due diligence requiremnts"
in assuring that everyone is reporting such income. Correct?

[ChEAr$]

I've had clients in the past that may have had 15 separate payments to various sub-contractors with some receiving less than the 600.00:

a. After completion of the 1099's, I intentionally arrange the printing so
that the 600.00 & above are on the first printed part of the 1099, with the LESSER amounts coming at the end.

b. I then remove the LESSER amounts. Separate the sheets and discard the one normally sent to IRS; give the t/payer his copy and
mail the others with the lesser amounts to the sub-contractors.

c. By doing this we are assured that the sub-contractors report this income either on Sch C or line 21 of the 1040. Also the copy retained by the t/payer supports his deduction that he will be entering on the Schedule C.

This appears appropriate as part of our "due diligence requiremnts"
in assuring that everyone is reporting such income. Correct?

I like your way of handling this, in fact I suggest to clients they give all payees a 1099
regardless of income. And in since my software (self written way back when) doesn't
allow for re arrangement of printing except in alpha order, I simply use a pen to check the
VOID box for those under 600 on the IRS copies sent to austin.

But you statement in c. above doesn't matter, for it is never our responsibility that sub
contractors report their income on their 1040's. So it's not a matter of our due diligence.
We are not policemen.

[JohnH]

With my client issuing the most 1099's, we print & mail only the ones over $600 because we're trying to stay under the magic 250 number for Copy A, plus he doesn't like to spend the time & postage mailing to the other 300 or so who are under $600. (Actually, he doesn't want to pay me to do that additional work for him )

But I show him how to print out a recap of payments to each vendor, so if someone who's under $600 calls to ask about the 1099, he can send them a printout. I'm guessing that some of them ask about the 1099 so they can figure out whether to report the income or not, but as Harlan said, enforcement isn't our job. We just follow the rules as they're written. ( Personally, I'd like to see the threshhold raised to a more meaningful number - say $1,000 or so).

[Black Bart]

Dual 1099 entries

Can I put rent and non employee compensation on the same 1099, or do I need two separate forms?

I've never seen/read any rule on it but I don't see why not. I've done it several times and it went through IRS okay with no kickbacks.

[taxea]

I totally like Edward's way of handling this and I would send all 1099's to the workers as well.

[Beth]

Does anyone have an IRS address to send the 1099 copy? My client is doing his own (just has one) and is in MN. I have hunted for an address and am unable to lcoate one. Having never had to file one for myself or others, am I missing something?

[JG EA]

On 1096

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