
Hey there, awesome business owner! 🙋♂️✨ Tax season is right around the corner, and you might be wondering: “Do I need to send out any 1099s this year?” Don’t worry! We’ve got you covered with a quick, easy, and fun guide to figure it all out. Let’s dive in! 🎓✨
What’s a 1099 Anyway?
Think of a 1099 like a little postcard to the IRS, telling them about payments you made to people who helped your business. If you paid someone $600 or more during the year and they’re not your employee, you might need to send them one.
Who Gets a 1099?
Here’s the scoop:If you paid $600 or more to someone for services (not goods) during the year, you’ll usually need to send them a 1099. This includes:
Contractors or Freelancers: Like your graphic designer, web developer, or anyone else providing a service.
Rent Payments: If you’re renting office space, the landlord may need a 1099 (unless they’re a corporation).
Lawyers: Payments to attorneys need a 1099, even if they’re incorporated.
When You Don’t Need to Send a 1099
Good news! There are some situations where you don’t need to worry about sending a 1099:
Payments Made via Credit Card, PayPal, or Zelle: 💳📧 If you paid someone using one of these, you’re off the hook! These processors usually report the payment directly to the IRS. (But heads up: Zelle doesn’t report, so you’re still responsible if you paid $600 or more through Zelle.)
Payments to Corporations: 💼 Most payments to C-Corps or S-Corps don’t require a 1099, except for medical or legal services.
Employee Wages: 📉 Employees get a W-2, not a 1099.
Reimbursements or Expense Reports: 🍽” Did you pay someone back for expenses (like travel or supplies) with proper receipts? No 1099 needed for that!
Professional Corporations (Like Us!): 📚 If you’re one of our amazing clients, no need to send us a 1099—we’re a professional corporation.
Why Does It Matter?
Sending out 1099s isn’t just good business—it’s required by the IRS. Plus, it helps keep your books clean and avoid penalties. 🛠️⚡
Quick Checklist for 1099s
Did you pay someone $600 or more for services? ✅
Are they not an employee? ✅
Did you pay them by check, cash, or bank transfer (not credit card or PayPal)? ✅
Are they an individual, partnership, or LLC (not a corporation)? ✅
If you checked all the boxes, you’ll probably need to send a 1099! 🎨✉
Still Not Sure?
No problem! Tax rules can be tricky, but we’re here to help. Reach out to us with your questions, and we’ll make sure you’re on the right track. 🏆☎️
Happy 1099 season! 📈✨
Comentários