1099 misc

[gman]

Do any of you prepare 1099 misc for rent or labor and include amounts that are under the filing threshold? I normally do not, but have some asking for them because they can never remember the amount they were paid.

[ATSMAN]

If it is less than $600 I do not prepare a 1099-Misc except for 1 or 2 situations that I can recall where the taxpayer insisted a 1099 be issued to keep their records straight. I see no harm in issuing a 1099-Misc if it is below the filing threshold.

[gman]

1099-farm rent

With crop rent, some years payments are over the threshold and they get a 1099, so the next year when they do not get one because the rent is under they start to worry.
I think I will stick with not sending them.

[Burke]

According to my local IRS office, they are no longer stocking these forms, which many small business owners/contractors depended on. I am sure this is going to result in far fewer persons ever completing them.

[Kram BergGold]

1099 Forms under 600

The rule is they are required at $600 or more. It is fine to do them when under $600 but they are not required.

[ATSMAN]

According to my local IRS office, they are no longer stocking these forms, which many small business owners/contractors depended on. I am sure this is going to result in far fewer persons ever completing them.

Correct. You have to order from irs.gov and it takes around 2 weeks to deliver. At this late stage head to Staples or get an online service company to do it for around $3 per form.

[taxea]

it is correct that they are not required for services to rentals however, I issue them whenever the service exceeds $600. and I also issue them for services to my personal residence if I know I am dealing with a sole-proprietor.

[RitaB]

I'm getting less willing to explain as time goes by

If a client hands me a list from which they want me to prepare 1099s, I do them all, regardless of the amount. No discussion of the limit.

And I had a stupid conversation yesterday with a girl who kept telling me her friends said she didn't have to report income if somebody paid her less than $600. I asked her, "So do you think I'm exempt from paying taxes? I don't charge anybody $600. Ask your friends what I should do. Have I been overpaying all this time? OMG."

Sent her the TaxTips from irs.gov. Have not heard back.

[ATSMAN]

....And I had a stupid conversation yesterday with a girl who kept telling me her friends said she didn't have to report income if somebody paid her less than $600. I asked her, "So do you think I'm exempt from paying taxes? I don't charge anybody $600. Ask your friends what I should do. Have I been overpaying all this time? OMG."

Sent her the TaxTips from irs.gov. Have not heard back.

That is a very common belief that if you are paid less than $600 there is no need to report it as income. I run into this all the time with folks doing odd jobs!

[kathyc2]

According to my local IRS office, they are no longer stocking these forms, which many small business owners/contractors depended on. I am sure this is going to result in far fewer persons ever completing them.

It was my understanding that the red drop ink for 1099's was to go away the year after it did for W-2s. Conspiracy that it's still a requirement.