[GNC] 1099's

[Robert Heller]

At Sat, 16 Nov 2024 10:08:05 -0800 "Stan Brown (using GC 4.14)" <stan+gc at fastmail.fm> wrote:

> 
> 
> 
> On 2024-11-16 06:31, Robert Heller wrote:
> > At Sat, 16 Nov 2024 14:00:24 +0000 "Maf. King" <maf at chilwell.net> wrote:
> > 
> >> Whats a 1099?   is this something specific in the rules for the USA?
> > 
> > Yes. It is a way for the IRS to track income > $999.99 that is not regular
> > wages (which are tracked with W2s). Eg as a contractor I would invoice a
> > client for jobs and if the invoices sum to $1,000.00 or more, the client would
> > file a 1099 with the IRS (basically stating that they paid me $x for contract
> > work) and send me a copy of the 1099. Also 1099's are used by banks when
> > paying intrest > $999.99, and also pension funds (1099r), Same for stocks and
> > bonds dividends/interest. A 1099 form is a form stating that money was paid as
> > reportable income to a taxpayer. 
> 
> Where did you get $1,000?  The minimum is $600 in any one year, not
> $1,000, but if the client is a residence not a business then they would
> not file a 1099. All that's actually in the URL you posted in your
> follow-up:
> <https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return>

I misremembered. Sorry about that.  

> 
> (And if you withheld Federal income tax you must file a form 1099,
> regardless of amount you paid.)
> 
> However,
> "You are not required to file information return(s) if any of the
> "following situations apply:
> "* You are not engaged in a trade or business.
> "* You are engaged in a trade or business and
> "    **the payment was made to another business that is incorporated,
> "      but was not for medical or legal services or
> "    **the sum of all payments made to the person or unincorporated
> "       business is less than $600 in one tax year"
> 
> For instance, if someone does more than $600 of handyman work at my
> residence, and I'm not operating a business out of my house, I don't
> need to file a 1099. (That's how I read the above, after asking in the
> misc.taxes.moderated newsgroup.)
> 
> Disclaimer: I am not a tax professional, and if you're not comfortable
> reading the IRS website you may want to consult one.
> 
> Stan Brown
> Tehachapi, CA, USA
> https://BrownMath.com
> 
>                                                                                                       
> 

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