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heliton
Level 1

1099

Hi. We have a restaurant. We have a couple of musicians that I'm pretty sure we have to file 1099 because we just send them a check and it's over $600 a year. How about who cleans our restaurant and they have a company, attorneys, company that does our repairs? Do we need to send them a 1099 form too? Thanks

4 Comments 4
john-pero
Community Champion

1099

In a nutshell, exceptions apply>>>>Anyone you pay by cash or check over $600 in a year gets a 1099 unless they are a full corporation with INC at the end of their name., although legal corporations do get a 1099. You do give  a 099 to an LLC, you do not give a 1099 to Intuit, Inc (as tempting as it might be. there is no penalty for issuing a 1099 to a corporation theta is exempt from getting one but Intuit will not respond to your W9 request for their tax ID)

 

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

 

So, your cleaning company and repair company - possibly. Your attorney? Absolutely. Also your tax CPA

qbteachmt
Level 15

1099

The rule is : $600 Or More.

 

 

Yes, you would 1099 the Musician you hired, by first asking them for a W9 before they start playing; or at least, before making the gig payment that puts them at $600 or more.

 

Every Box on the 1099 has specific thresholds and rules. Example:

Box 1 = Rent for the landlord, unless the Landlord is a Professional Property Management Firm.

Box 6 = Medical payments, to the Provider by name or their corporation if they work under their own corporation.

Box 2 = $10 or more, for Royalties paid.

 

Having an INC in the name is Not Proof; get a W9.

elizabethsteffen
Level 1

1099

When I use the QB 1099 processing wizard and choose my attorney, it won't prepare one?  Any thoughts?

Anonymous
Not applicable

1099

Hello, elizabethsteffen.

 

Your payment to your lawyer might be under $600 that's why QuickBooks is not preparing 1099. For more Information about reporting on payments to attorneys, please see Box 14. Gross Proceeds Paid to an Attorney section in this publication: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf. 

 

Please visit us again if you have further questions. Have a great day!

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