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JustPassingBy
Level 2

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Okay, this is my first experience dealing with tax forms from paying an affiliate social influencer.

 

So he is a US citizen. I paid him $1000 via Paypal. He sent me W-9.

 

Since Paypal deal with 1099-K forms (I presume since it's above $600 threshold?), does that mean I don't need to file anything (in this matter), even to IRS?

 

Or do I need to still submit 1099-NEC to IRS (and him)?

 

Sorry I'm a noob on this. And thanks in advance!

Solved
Best answer January 27, 2021

Best Answers
MonicaM3
QuickBooks Team

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Good Morning @JustPassingBy,

 

Welcome to the Community, and can I start by saying your Profile pic has made my day!

I’d be happy to clear up your question regarding 1099-NEC vs 1099-K. The IRS regulations stipulate that anything paid by credit card (person or business) would be reported on a 1099-K. So, since this contractor was paid only via PayPal, they would not receive a 1099-NEC from you, just the 1099-K if they met those requirements as determined by the IRS. I’ll leave this link to the IRS webpage with all the particulars for your reference. https://www.irs.gov/instructions/i1099msc. I know I like to have all the facts for peace of mind.

 

Let me know if you have any other questions about 1099’s or anything else. I’m here to help in any way and happy to do so.

View solution in original post

ReyJohn_D
Moderator

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Let me say you're welcome on behalf of my colleague, @JustPassingBy.

 

I can share some insights about 1099-NEC in QuickBooks Online.

You don't need to submit 1099-NEC to the IRS when your contractors aren't eligible. In your case, the third-party institutions (PayPal) will have to report all electronic payments and the likes on the 1099-K form as per the IRS guidelines.

 

If you need to submit 1099 forms in the future, you can refer to Step 4 in this article to get started: Create and File 1099s using QuickBooks Online.

 

Feel at ease to comment if you have more questions about 1099s or any QuickBooks-related concerns. I'd be glad to help you some more. Have a fantastic day!

View solution in original post

5 Comments
MonicaM3
QuickBooks Team

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Good Morning @JustPassingBy,

 

Welcome to the Community, and can I start by saying your Profile pic has made my day!

I’d be happy to clear up your question regarding 1099-NEC vs 1099-K. The IRS regulations stipulate that anything paid by credit card (person or business) would be reported on a 1099-K. So, since this contractor was paid only via PayPal, they would not receive a 1099-NEC from you, just the 1099-K if they met those requirements as determined by the IRS. I’ll leave this link to the IRS webpage with all the particulars for your reference. https://www.irs.gov/instructions/i1099msc. I know I like to have all the facts for peace of mind.

 

Let me know if you have any other questions about 1099’s or anything else. I’m here to help in any way and happy to do so.

View solution in original post

JustPassingBy
Level 2

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Hi, 

 

Thank you very much for your reply! Much appreciated.

 

Last question: do I still need to send 1099-NEC to IRS despite the fact that the independent contractor won't receive any?

 

Thank you again,

ReyJohn_D
Moderator

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Let me say you're welcome on behalf of my colleague, @JustPassingBy.

 

I can share some insights about 1099-NEC in QuickBooks Online.

You don't need to submit 1099-NEC to the IRS when your contractors aren't eligible. In your case, the third-party institutions (PayPal) will have to report all electronic payments and the likes on the 1099-K form as per the IRS guidelines.

 

If you need to submit 1099 forms in the future, you can refer to Step 4 in this article to get started: Create and File 1099s using QuickBooks Online.

 

Feel at ease to comment if you have more questions about 1099s or any QuickBooks-related concerns. I'd be glad to help you some more. Have a fantastic day!

View solution in original post

JustPassingBy
Level 2

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

Thank you very much! You are all very helpful :) :) I truly appreciate it.

JessT
QuickBooks Team

Paid US citizen Social Influencer via Paypal - No need to file anything? (1099-NEC, 1099-K, 1099-MISC)

I'm glad to know that my colleague was able to help you, JustPassingBy!

 

We're just around if you need anything else. Enjoy your weekend!

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