#BookkeepingTip: Who Needs a 1099-MISC?

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I remember the first time I had to file a 1099-MISC for a contractor. I was so confused if I actually needed to file it. What I needed from her. If I was filling it out the right way.

So first thing's first, you need to figure out if this is even something you should be concerned with. 


Is the person in the United States?

If not, no need to worry with a 1099-MISC. But you will need another form I'll be talking about in another #BookkeepingTip ;)

If so, keep going.


Did you pay this person $600 or more?

If not, no need to worry with a 1099-MISC.

If so, keep going.


Is the person/business working for you a corporation or an LLC filing as a corporation?

If so, no need to worry with a 1099-MISC.

If not, keep going.


Did you pay them by ACH (bank to bank transfer), cash, check, or direct deposit?

If not, no need to worry with a 1099-MISC.


If so, you need to file a 1099-MISC.


Any contractors paid by credit card or PayPal will receive a 1099-K if certain stipulations are met from those payment processors. This is no longer your domain to worry about.


If you have a contractor who will need a 1099-MISC, you should send them a W-9 first to get their correct info --> https://www.irs.gov/pub/irs-pdf/fw9.pdf

To file a 1099-MISC, you can choose to have your bookkeeper or accountant do it. Or if you are the DIY type, you can use an online service like https://www.track1099.com/ to do it fairly easily and inexpensively.