Do You Need to Issue a 1099? 1099-NEC & 1099-MISC Explained.

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  • เผยแพร่เมื่อ 8 ก.พ. 2022
  • Many business owners don’t quite understand their responsibilities as it relates to issuing 1099s (1099-NEC OR 1099-MISC) so in this video I am going to clarify this and answer the question…Does your business need to issue a 1099?
    1099-NEC
    Anytime your business pays an individual or another business (such as a sub-contractor) for services (not products), and that individual or other business is not an employee of yours (meaning they are not on your payroll and will not receive a W-2 from your business), you may be responsible for issuing them a 1099-NEC.
    Above, I used the word “may” because there is a list of notable exceptions where you do not need to issue a 1099-NEC - see below:
    1. You paid them less than $600 during a calendar year.
    2. You paid them via credit card or debit card (the card issuer will report these payments on Form 1099-K).
    3. You paid them via a third-party payment network (TPPN) such as PayPal, Venmo or Cash App as long as you confirm with the TPPN that you are sending business payments correctly on the TPPN platform. For example, for PayPal and Venmo, you should setup a business account with them and select the "goods and services" option when sending payments. For Cash App, you should setup a "Cash for Business" account to send payments and not use a "Cash App" personal account for business payments. If setup properly, the TPPN will report the payments on Form 1099-K.
    4. Their business (LLC or Corporation) is taxed as an S or C-Corporation. (If you paid a lawyer/attorney, you still need to issue them a 1099-NEC even if they are taxed as an S or C-Corp...the IRS doesn't trust attorneys for some reason).
    5. They do not live in the U.S. and do not perform their services in the U.S.
    6. They sell merchandise, freight, storage or similar items from them (and therefore, they did not perform a service for your business)
    Hopefully, after reading the list of exceptions above, your worries have subsided. That said, let me provide a list where you actually might need to issue a 1099-NEC:
    You paid an individual or a business more than $600 via cash, check, wire transfer, ACH or Zelle and you don’t know if that individual or business is taxed as an S or C-Corp.
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    #1099 #1099NEC #1099MISC

ความคิดเห็น • 134

  • @NaviMarajCPA
    @NaviMarajCPA  ปีที่แล้ว +7

    1099-NEC
    Anytime your business pays an individual or another business (such as a sub-contractor) for services (not products), and that individual or other business is not an employee of yours (meaning they are not on your payroll and will not receive a W-2 from your business), you may be responsible for issuing them a 1099-NEC.
    Above, I used the word “may” because there is a list of notable exceptions where you do not need to issue a 1099-NEC - see below:
    1. You paid them less than $600 during a calendar year.
    2. You paid them via credit card or debit card (the card issuer will report these payments on Form 1099-K).
    3. You paid them via a third-party payment network (TPPN) such as PayPal, Venmo or Cash App as long as you confirm with the TPPN that you are sending business payments correctly on the TPPN platform. For example, for PayPal and Venmo, you should setup a business account with them and select the "goods and services" option when sending payments. For Cash App, you should setup a "Cash for Business" account to send payments and not use a "Cash App" personal account for business payments. If setup properly, the TPPN will report the payments on Form 1099-K.
    4. Their business (LLC or Corporation) is taxed as an S or C-Corporation. (If you paid a lawyer/attorney, you still need to issue them a 1099-NEC even if they are taxed as an S or C-Corp...the IRS doesn't trust attorneys for some reason).
    5. They do not live in the U.S. and do not perform their services in the U.S.
    6. They sell merchandise, freight, storage or similar items from them (and therefore, they did not perform a service for your business)
    Hopefully, after reading the list of exceptions above, your worries have subsided. That said, let me provide a list where you actually might need to issue a 1099-NEC:
    You paid an individual or a business more than $600 via cash, check, wire transfer, ACH or Zelle and you don’t know if that individual or business is taxed as an S or C-Corp.

    • @jerrygameshard
      @jerrygameshard 5 หลายเดือนก่อน

      Very informative video! Thank you! Quick clarification question on Venmo payments. I paid an individual $1800 in 2023 through Venmo. It was through a Business profile and came out of my business account but I just noticed the type of transaction has been payments between friends. Do I need to still file a 1099-NEC?

    • @mutuafx
      @mutuafx 4 หลายเดือนก่อน

      Very informative

  • @Hassanff3651
    @Hassanff3651 11 หลายเดือนก่อน +1

    Thanks, bro for making this concise and relevant video. More Power to you.

  • @efrainanaya5671
    @efrainanaya5671 2 ปีที่แล้ว +3

    Thank you for providing the clarification of Zelle the way I’ve explained it to individuals is think of it like a external bank transfer but instant.

    • @NaviMarajCPA
      @NaviMarajCPA  2 ปีที่แล้ว

      You’re welcome Efrain.

  • @gladyshurtadowood2924
    @gladyshurtadowood2924 ปีที่แล้ว +2

    Thank you for taking the time to explain this subject.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      You're welcome Gladys - thanks for watching!

  • @soniaho5173
    @soniaho5173 ปีที่แล้ว

    Thank you for this video! This was really helpful!

  • @user-pp1no6fj6t
    @user-pp1no6fj6t 5 หลายเดือนก่อน

    Thanks for this very useful and timely video.

  • @shellybrentlinger7403
    @shellybrentlinger7403 5 หลายเดือนก่อน

    This was so helpful! Thank you so much.

  • @jacola
    @jacola ปีที่แล้ว

    Thanks Navi -- this was helpful!

  • @AuttyBot
    @AuttyBot ปีที่แล้ว

    This was very helpful. Thanks!

  • @kirstiedwards9704
    @kirstiedwards9704 ปีที่แล้ว +1

    Hey Navi, great video, helped me with clarity on a couple items! I have sort of a weird one for ya, if a client purchases a Coaching Program would that fall under the category of service or product, seems kind of like a grey area to me. Thanks a bunch for any guidance you can provide!

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Hmmm....you might be overthinking this. If a client purchases a coaching program from me then they (the client) did not perform a service for my business and I would not issue them a 1099 regardless of how they paid me or how they were taxed.

  • @natalievaz1816
    @natalievaz1816 5 หลายเดือนก่อน

    very helpful video! thank you.

  • @user-xm5wo8ge6s
    @user-xm5wo8ge6s 3 หลายเดือนก่อน

    very useful, thank you!

  • @tobykeyz
    @tobykeyz ปีที่แล้ว

    Thank you for this.

  • @GopiHaran-gl4ex
    @GopiHaran-gl4ex ปีที่แล้ว

    Very informative and learning a lot from your videos! Thank you! Can you please share your wisdom on how to employ a part-time babysitter and what tax form an individual employer can provide for those who make above $7000 in one year?

  • @javyrosas8547
    @javyrosas8547 ปีที่แล้ว

    Hey Navi, thank you for your video! Do athletes or coaches that we pay for sponsorships or performance bonuses get a 1099 NEC or 1099 Misc?

  • @yelenaryabokon5070
    @yelenaryabokon5070 6 หลายเดือนก่อน

    Thank you it was helpful

  • @ginadloniak2781
    @ginadloniak2781 ปีที่แล้ว

    Thank you so very much for your video. Very helpful. One quick question, What if I didn't know and had been paying the individual as a friend through PayPal? Does that individual still get a 1099K? I already issued a 1099 nec from my business, but wondering for future reference. Also, where do I input the totals for income paid from my business to my children under the age of 18?

  • @ahctmp
    @ahctmp ปีที่แล้ว

    We are a small 501(c)3 corp. I have just started using Xero for our accounting system and have just learned that I have to issue a 1099. In the past year, I have used the services of Woodard, a company that arranged for the removal of black mold and then reconstructed some ceilings in our building. I also have used a service to remove leaves from our gutters for a number of years. THere are some other examples - but does our non-profit have to issue 1099's to these companies?

  • @ziaurrehman6522
    @ziaurrehman6522 ปีที่แล้ว +1

    thanks for the info.

  • @BA-hv7om
    @BA-hv7om 10 หลายเดือนก่อน +1

    Thank you. Do independent insurance agents receive their 1099 from the insurance company (imo)? Is the equipment and leads that the agent purchases, a tax deduction?

  • @bfourney
    @bfourney 10 หลายเดือนก่อน

    Super helpful, I had no idea about the cc payments not requiring a 1099. What about payments that are for both goods and services? Do they get a 1099? Does the 1099 only reflect the amount for the services portion of their payments?

  • @yuandalton8785
    @yuandalton8785 6 หลายเดือนก่อน

    Thank you for the wonderful video. I wonder whether you can help with this question - My workplace needs to issue 1099 NEC to attorneys. If one law firm has multiple attorneys who have been worked for us, should we issue one 1099 NEC to the law firm or should we issue 1099 NEC to each individual attorney?

  • @renaehunt2309
    @renaehunt2309 ปีที่แล้ว +1

    Thank you for this very informative video. You explained the 1099 issue well. I just have a follow up question-- If we Consign artwork from a private artist and the art sells we need to pay the artist. They are not an employee do we need to issue 1099-MISC for that product sold and we are paying them the commission.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      In my opinion, no. You’re paying them a commission due to a sale of a product. If the artist was performing a service for your business, then you may need to issue a 1099.

  • @judymanuel6361
    @judymanuel6361 7 หลายเดือนก่อน

    Thanks

  • @long1034
    @long1034 ปีที่แล้ว

    If I’m an S-Corp and I issued payments to another S-Corp for their services, where would I deduct those payments when I file my taxes? Is there a section on the form 1120s?

  • @Top5Showcase
    @Top5Showcase ปีที่แล้ว

    So could I pay independent contractors through paypal legally? Just making sure because it would be much easier. Also do I need to collect ssn and other information from employees when I hire them and if yes how should I collect it?

  • @JacquelineDelgadillo-zi2ps
    @JacquelineDelgadillo-zi2ps ปีที่แล้ว

    as a non profit organization, which vendors must receive a Form 1099? and what is a Recommend process to assure the requirements are met for 2022.?

  • @MihaelaStaicu-jl5go
    @MihaelaStaicu-jl5go ปีที่แล้ว +2

    Hi Navi. Thank you for the video! For catering services (food and serving service included) do I need to submit a 1099 NEC or 1099 MISC?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      Interesting question. I'm thinking you would issue a 1099-NEC for the serving service but not issue anything for the food preparation. Of course, if they meet any of the other exceptions I mentioned in the video and that are in the description you do not have to issue a 1099 regardless.

    • @MihaelaStaicu-jl5go
      @MihaelaStaicu-jl5go ปีที่แล้ว

      I really appreciate your answer! Have a great rest of the weekend!

  • @jorgevelasquez9955
    @jorgevelasquez9955 ปีที่แล้ว

    Can you explain a 1099 R, 1099 DIV, 1099 INT and how is this income taxed? Are any of these "passive income?"

  • @terriereed7488
    @terriereed7488 ปีที่แล้ว

    How is compensation to an HOA board member treated? Ex. Treasurer being compensated for a volunteer position

  • @tannertucker22
    @tannertucker22 ปีที่แล้ว +1

    Thank you. I’m also a cpa. Do you want to clarify the different between legal entity and tax filing status? Moreover, I notice the rules on paying health insurance premiums to Insurers to be ambiguous. Lastly, are accountants and CPA firms suppose get a 1099 just like attorneys? Thank you.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      Hi there. I discuss legal entity and tax filing status in a different video (one of my very first videos so its a couple years old now). Not sure what your question is about health insurance premiums, feel free to expand. CPA firms are different than Attorneys as it relates to receiving a 1099-NEC. The exemption from reporting payments made to corporations does not apply to payments for legal services...there is no mention of accounting/tax services on the 1099-NEC instructions.

    • @tannertucker22
      @tannertucker22 ปีที่แล้ว

      Thank you. I meant with respect to issuing 1099s. I discovered the answer. Thank you.

  • @chrisc8494
    @chrisc8494 ปีที่แล้ว

    How would you handle a 1099 for a business that has been paying an employees relative 60k a year for "school reimbursement"?

  • @poncefamily6919
    @poncefamily6919 ปีที่แล้ว

    Thank you answer afew questions, but
    What if not everyone that paid me over $600 send me the 1099nec?
    Do I have to wait till they do?
    How can I file my taxes if I haven't gotten all the 1099nec?

  • @alijawed1234
    @alijawed1234 ปีที่แล้ว

    Hi, great video. Thanks.. I have 2 Questions.
    Q1. If I own a single member LLC foreign owned, with principal office address in the US (WY), but no physical presence and no ECI, and I am outside the US, if a US company/Individual hires my services, will they have me fill out W8BEN, or W8BEN for corp? Remember Single member LLC is sole proprietorship, so will they treat me individual or a company? All services performed outside the US.
    Q2. Same situation as above but what if I hire a US based individual and company, what form will I have them fill out and in the end I will fill out 1099-NEC? Remember there is no ECI.

  • @TheUmaiz
    @TheUmaiz ปีที่แล้ว +1

    We are in Houston TX, If we get the cost of services from Outside USA. In that case, should we need fill or submit this form 1099-NEC on behalf of a vendor outside the USA?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      If the foreign contractor is not a U.S. taxpayer, and all of the contracted services were performed outside the U.S., a Form 1099 is not required. Instead, you will need to ask the contractor to complete a Form W-8BEN.
      The Form W-8BEN certifies that the foreign contractor is not a U.S. taxpayer. The Form W-8BEN is never submitted to the IRS, however, it needs to be held in your files in case of an audit. If you are audited by the IRS, the Form W-8BEN will support your reasoning for not issuing a 1099.

  • @responsiblecitizen7288
    @responsiblecitizen7288 ปีที่แล้ว +1

    If landlords filing schedule (e) don’t give handymen 1099 as most of them are unwilling, in case of audit do you think the auditor can deny the whole deduction (payment made to the handyman)?
    Or they are just going to make you pay penalty?

  • @user-wb4bz3ge5t
    @user-wb4bz3ge5t 5 หลายเดือนก่อน +1

    Hi Navi, great video. this is my first year issuing a 1099-NEC. My question is to confirm, I have to issue and file the 1099-NEC before filing my business income tax, right? Thank you

    • @NaviMarajCPA
      @NaviMarajCPA  5 หลายเดือนก่อน +1

      Generally, 1099s are to be issued by January 31st.

    • @rickygarcia1248
      @rickygarcia1248 5 หลายเดือนก่อน

      Ok, thank you

  • @alweber8575
    @alweber8575 ปีที่แล้ว

    Can you tell me why I would need to fill out a W9 for security deposit? I was told for interest payments. I'm sure the interest isn't over 600$?

  • @smooth1748
    @smooth1748 4 หลายเดือนก่อน

    I rent a shelf at a store to sell my artwork. Am I supposed to issue a 1099 misc? I pay monthly whether I sell anything or not. If i do get a sale, they keep a percentage and i get a check. I pay $1,200 a year or $100 a month and via paypal or venmo

  • @gracielamesa5423
    @gracielamesa5423 4 หลายเดือนก่อน

    Curious, what if there is no $ payment but an exchange of goods for example product reviews in exchange for free products.

  • @panamdragonboat
    @panamdragonboat ปีที่แล้ว +1

    What about using a direct deposit payment from the business account like what is used at Wells Fargo Direct Pay? I'm guessing I still need to send the 1099 NEC to an individual service contractor... yes?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      I'm not that familiar with Wells Fargo Direct pay but it seems to me that it an ACH service so follow the guidance as if you paid them with cash, check, ACH or Zelle.

  • @jessegarza5394
    @jessegarza5394 ปีที่แล้ว +1

    I received an adjustment from the IRS on the amount I owe. When going over my taxes for 2021 I found that I overlooked 2 names that were supposed to be issued a 1099. At this point can I issue one now for 2022 or what are my options? i don't prepare those myself I send it to a tax preparer and never thought twice about it.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      You may be able to issue a 1099 for the 2021 tax year. I’ve been told by other tax professionals that their clients never received a late filing penalty from the IRS when filing it late. Typically the late filing fees are accessed when the IRS is the one bringing it to your attention via an audit/inquiry not when the taxpayer is trying to do the right thing.

  • @skyerlog5487
    @skyerlog5487 5 หลายเดือนก่อน

    For providing services by S or C corps gets no 1099. thanks but Attorneys gets whether they are S or C corps. Do landlord gets 1099?

  • @AnasKhan-uw7vf
    @AnasKhan-uw7vf 5 หลายเดือนก่อน

    SIR IS THERE ANY WAY TO FILE TAXES OF S-CORP or C CORP or individual without software or with software i.e. free? and easy too.

  • @AlexanderDimas-xi8og
    @AlexanderDimas-xi8og ปีที่แล้ว +1

    Under Box 1 - Professional service fees such as attorneys, accountants, architects... etc
    Are accountants/CPA/consultants/ is there an exception for these professional's services, even if there are a C or S corps?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys' fees (in box 1 of Form 1099-NEC) or gross proceeds (in box 10 of Form 1099-MISC), to corporations that provide legal services.

  • @debas7282
    @debas7282 ปีที่แล้ว

    Dear sir i have received 1099 Misc Downpayment grant (class 3 other income) bc i bought condo. Should i disclose it to IRS as my income??? Bc it lower my refund 2000$ Since my income goes up ! Is there any pandemic waving in Nevada state . Im first time homebuyer and head of household . Closing date was May 2022

  • @truacts-gs3vl
    @truacts-gs3vl ปีที่แล้ว

    What if the business is not based in the US, but the contractor is. As the business are they still required to file the 1099NEC?

  • @acieramos2908
    @acieramos2908 ปีที่แล้ว

    Hi! Do we issue a 1099 on expenses paid to a vendor via biz debit card? Is that the same as a check? On the form is it other income?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      No, if you paid with a debit or credit card, you do not have to issue a 1099. I just added a pinned comment. Give it a read and it will help you.

  • @box8497
    @box8497 7 หลายเดือนก่อน

    Great video! Cleared up a'lot of info for me. But I'm in a weird situation and hoping maybe you can help me with some information. I get paid for a service i provide for a business abroad via PayPal. I guess I'd be considered a freelancer? So with the money I'm paid, I then pay another person to do most of the work for me who also works abroad also paid via PayPal. We split the money 10-90. I the 10% and him the 90%.The cost of the service is about 1k per month. After I receive the 1k I then pay him his 900. How do I go about this? What forms do I need? How do I report just the 100 per month I pocket on my end? Any help would greatly be appreciated!!

  • @azurewealth4022
    @azurewealth4022 ปีที่แล้ว

    In a real estate transaction, a title company issued a check to my company on 27 Dec for a fee (not the purchase/sale of real property, just a fee at closing) and I used consultation services from another LLC in connection with that income, and the other LLC received payment in 2023, would my LLC then pay income tax on the funds it received in 2022 and realize the expense for consultation serviced on its 2023 return? The other LLC was not paid until 2023 but the expense to my LLC was for income received in 2022. I don't want to pay taxes on the income when it was a paid expense to another entity and it's a stickler because the income occurred on 27 Dec and the payment was issued in 2023.

  • @yuanzhang5766
    @yuanzhang5766 ปีที่แล้ว +1

    Does an individual need to issue 1099NEC to the contractor? e.g. an individual investor (don't have a business) hire a contractor to renovate a house as rental property. Thanks!

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Yes - if you are a landlord and you hire an independent contractor, you should follow the rules within the video and issue a 1099 if required.

  • @mvelentzas
    @mvelentzas ปีที่แล้ว

    I'm confused. According to Paypal, for the tax year 2022, the only case in which they'll issue you a 1099-K is if you've made over $20k. For the year 2023 that threshold will drop to $600. Therefore I'd assume you DO need to issue a 1099-NEC for any amount under $20k paid for services.

  • @trollerexpert
    @trollerexpert ปีที่แล้ว

    do i need to have a llc or register my business first?

  • @hygiverse
    @hygiverse 8 หลายเดือนก่อน

    So if business owner pays Fiverr, or other gig website with a debit card, they don’t need to file a 1099-NEC right?
    Also, if a business owner pays with stripe, they don’t need to file a 1099-NEC right?

  • @tlcbear411
    @tlcbear411 4 หลายเดือนก่อน

    what can I do if I cannot get the lawyer, I paid to give me his EIN #, He has been telling me his secretary is out office. I need to call back it been 30 days and she still has not been in the office, now he said she be back after the first of march. can I just file the form with the information I have on him I have the cashed checks?

  • @maribelrincon8825
    @maribelrincon8825 ปีที่แล้ว +2

    good afternoon @Navi thank you for your video however I would like to know if I need to report the partnerships according to the W9, in this 1099 and why? once again thanks a lot

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      If you request a W-9 and it is returned to you and the entity is a Partnership or an LLC taxed as a Partnership, then you need to issue a 1099 unless they meet the exceptions noted in the video and description. As for why, because the IRS says so. Sorry I don’t have a better answer on the why.

  • @TheAlphaBrett
    @TheAlphaBrett ปีที่แล้ว

    I believe that the 1099 K didn't end up happening this year, which has been a nightmare for my job, because now we have to worry about them :(

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Yea, the IRS pushed the requirement to 2023. :-(

  • @bkearnaghan
    @bkearnaghan 4 หลายเดือนก่อน

    Wow! This is all news to me. I've been sending out 1099s to subcontractors no matter how I paid them. Lots of them were paid by Venmo, but I hear that Venmo and other Cash aps were told they don't have to issue their tax documents as it has been delayed for a second year. Let's Go Biden!

  • @lovelorrrn
    @lovelorrrn ปีที่แล้ว +1

    what is, and what do i have to do, if my 1099 misc has 2 royalties? not sure what it particularly mean

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Royalties can be tricky. In general, if you did the work once, and you don't do it again, you can claim royalty income as other income on your tax return (not on Schedule C). However, if you continuously work on the item that is providing the royalties, then that will likely be self-employed income and reported on Schedule C.
      For example, if you write a book and release it and don't ever do anything related to the book ever again. It might be other income.
      If you write the book, go on a book tour, create videos about the book, promote it on podcasts, write revisions, etc. That is self-employed income.

  • @user-ti4dl8tw7h
    @user-ti4dl8tw7h ปีที่แล้ว

    So, are only businesses required to issue 1099? Question is, if a friend pays another friend for favors that's $compensated$ over $600/ yr, do they (individuals) need to issue 1099-NEC for any miscellaneous "services rendered" (meaning it's not goods exchanged)? My friend just informed me her CPA says she needs to issue me 1099 because the money she paid me 2022 totaled over $1000 or something. I've done some "services" for her business which I'm sure was under $600, but also did favors as friend and got money compensated for my time (like $10 here, $20 here). All payments had been Zelle last year so I have no idea if she paid out from her business acct or personal acct. In past, she clearly separated personal vs company checks. Can she combine both personal and company into one 1099 to me?

    • @user-ti4dl8tw7h
      @user-ti4dl8tw7h ปีที่แล้ว +1

      Btw, she never gave me w-9 and I never expected to really "work" for her, it's just a little compensation I received for my time, because she needed my help with English desperately some times

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      The issuance of 1099s only applies to businesses, including sole proprietorships. For example, nonbusiness owners do not issue 1099s for services performed by an electrician who does work on their personal residence. So, if you were doing work for her business, and you don't meet any of the exceptions I mentioned in the video (and also posted in the description) then she should have issued you a 1099. Hope this helps.

  • @aparnamukthapuram7204
    @aparnamukthapuram7204 ปีที่แล้ว +1

    Hi, Can we change 1099 MISC to 1099 NEC after filing MISC , please confirm the process.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      You would have to file a corrected 1099-MISC reporting $0.00 and a new 1099-NEC with the amount paid.

  • @Meklistine
    @Meklistine 10 หลายเดือนก่อน

    Im not sure why national visa center asking my husband a 1099 since we already forwarded a w-2 for his tax? Do we need to send a 1099 nec?

    • @Meklistine
      @Meklistine 10 หลายเดือนก่อน

      1099 included remittance abroad?

  • @rachelhorne8410
    @rachelhorne8410 2 ปีที่แล้ว +1

    Do you have to print yourself a 1099 for you own salary for a self employed business owner?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      If your business is taxed as a sole proprietorship, then you don't need to issue yourself a 1099-NEC. Essentially, your Schedule C (income tax form) is informing the IRS how much profit you made and how much tax you have to pay. If you are taxed as an S Corporation, then you should be paying yourself a reasonable compensation via payroll and you will ultimately receive a W-2.

  • @Iheartfinance2
    @Iheartfinance2 2 ปีที่แล้ว +1

    So business owners should 1099 an accountant as long as the accountant is not their employee?

    • @NaviMarajCPA
      @NaviMarajCPA  2 ปีที่แล้ว

      Depends on how the accountant is taxed. If taxed as a sole proprietorship or partnership, issue a 1099. If taxed as S or C Corp, do not issue a 1099. If paying less than $600/year do not issue 1099, regardless of how taxed. None of this applies unless paying by check, cash, or similar method.

  • @kevinchimil4135
    @kevinchimil4135 ปีที่แล้ว

    I just received a 1099 misc form out of nowhere. They only thing that is had is other income and it just has $600. So I have to pay that or was it an error? Because I don’t own any type of business or anything. So I don’t know why I received it

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      You should claim that income on your tax return assuming you actually did receive a gift, award or maybe you sold something on a platform such as eBay that triggered you to receive the 1099?
      If you received an incorrect 1099-MISC or 1099-NEC form, notify the payer immediately to explain the error and request a new form. If you don’t receive a new 1099 before the time you’re required to file your tax return, check with a licensed tax preparer to see how to deal with the incorrect form.

    • @92Stillers
      @92Stillers ปีที่แล้ว +2

      I too received one just yesterday for $700 I was under the impression it was possibly for the child tax thing they did last year where they sent money but I’m not too sure

  • @MrDsalomon
    @MrDsalomon ปีที่แล้ว +1

    I assume that this applies only to businesses. A private individual, does not have to issue a 1099 to workers who work on his property. Please respond.

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      That’s correct. This is a requirement for business owners only.

    • @prashantmore143
      @prashantmore143 5 หลายเดือนก่อน

      @@NaviMarajCPA do a private individual landlord without LLC needs to issue a 1099 NEC for repairs ?

  • @tdill5419
    @tdill5419 5 หลายเดือนก่อน

    What if my company paid for services via ACH?

  • @vincentcorso1688
    @vincentcorso1688 ปีที่แล้ว +1

    What if I issue a 1099 misc but I should not have?
    Ie the company is an LLC is an S corp

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Corrections to Form 1099-MISC
      If you need to correct a Form 1099-MISC that you have already sent to the IRS:
      For paper forms, see part H in the current year General Instructions for Certain Information Returns; or For electronic corrections, see Pub. 1220.
      www.irs.gov/instructions/i1099mec

    • @vincentcorso1688
      @vincentcorso1688 ปีที่แล้ว

      @@NaviMarajCPA
      Can you get penalized for sending a 1099 that you should not have?

  • @user-go2sf7zg6k
    @user-go2sf7zg6k 5 หลายเดือนก่อน

    If partnership? Needs to issue 1099?

  • @nadname5291
    @nadname5291 ปีที่แล้ว +1

    My tax preparer withholded $650 directly from our bussiness account. Do I need to issue 1099Nec?
    They didn't tell us about it

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      Would need to know more details to answer that question. Technically, if they were paid via ACH, and they are not taxed as an S or C Corporation, you would need to issue a 1099.

    • @nadname5291
      @nadname5291 ปีที่แล้ว

      @@NaviMarajCPA , thank you, for the video and for the answer.
      I'm going to ask her to send me W-9. If her LLC isn't Scorp I'll issue 1099.
      This channel is very useful.
      Thank you 😊

    • @nadname5291
      @nadname5291 ปีที่แล้ว

      They refuse to give me W-9. They said they are not subcontractors, they are professionals, who don't work for us, but with us (receptionist said, not accountant).
      I hope they are treated as Scorp, because my question was unfamiliar for them

  • @LorenaSilva-gi1jg
    @LorenaSilva-gi1jg ปีที่แล้ว +1

    What about if I’m a provider and received 1099 nec??

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Then you would need to claim that income on your tax return.

  • @kadoshfinancial5762
    @kadoshfinancial5762 ปีที่แล้ว

    is alarm monitoring considered a subcontractor?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Wow, good question. I guess they are performing a service for your business. I just added a pinned comment and some information in the description of this video. Give it a read, chances are, even if they were considered a subcontractor, you probably don't need to issue a 1099 if you review the list of exceptions.

  • @user-pj4ri8zw5f
    @user-pj4ri8zw5f 9 หลายเดือนก่อน

    What about wire transfer ?

  • @sukhvir332
    @sukhvir332 ปีที่แล้ว +2

    Is this for US or Canada?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      These are all U.S. tax forms.

  • @Christian-kx1ck
    @Christian-kx1ck ปีที่แล้ว +1

    What about software subscriptions?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      I think you're safe here. Plus, if it is a large company, they are definitely operating as a C Corporation, perhaps S Corporation if smaller company.

  • @JonB86
    @JonB86 ปีที่แล้ว

    Dose Wonolo included do it's a corporate

  • @wickedcrypto6004
    @wickedcrypto6004 ปีที่แล้ว +1

    I forward money to my girl friend oversea does that count?

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว +1

      Is this a serious question? 😂 If so, if she is performing a service for your business and she is a U.S. resident, then yes.

    • @wickedcrypto6004
      @wickedcrypto6004 ปีที่แล้ว

      @@NaviMarajCPA No she is not performing any business etc... 😂 Its just me giving her a helping hand. I don't want to get surprised by the IRS. I guess the 1099 only applies if you are working for yourself go it. Sorry for the silly question. You live you learn. Thank you

  • @atonementandreconciliation3749
    @atonementandreconciliation3749 ปีที่แล้ว

    What law requires this?

  • @FLEXIFITNESS1
    @FLEXIFITNESS1 ปีที่แล้ว +1

    Now what if they are OVERSEAS workers but the work they do is within the U.S. (it's alld igital)

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      If a foreign contractor performs their work outside of the US and is not a US Citizen/resident, then you do not need to issue them a 1099. You may want to request the foreign contractor to complete a W-8BEN and keep it with your records incase the IRS ever asks why you did not issue a 1099.

  • @aetorchbearer99
    @aetorchbearer99 ปีที่แล้ว

    Where can I generate 1099 NEC for my non employee

    • @HRotce
      @HRotce ปีที่แล้ว

      you need a W-9 signed and with all the info.

    • @chessbizz9547
      @chessbizz9547 ปีที่แล้ว

      I have w9 signed with all info.. I am looking for places I generate 1099 NEC. Is it as sample as download the form from IRS and input the data. Or do I need particular website to generate one. Local CPA charging too much and I find online website charging 10 dollars.

    • @aetorchbearer99
      @aetorchbearer99 ปีที่แล้ว

      @@HRotce I have w9 signed with all info.. I am looking for places I generate 1099 NEC. Is it as sample as download the form from IRS and input the data. Or do I need particular website to generate one. Local CPA charging too much and I find online website charging 10 dollars.

    • @HRotce
      @HRotce ปีที่แล้ว

      Try E-file forms 1099 with IRIS

  • @NVGEAR
    @NVGEAR ปีที่แล้ว

    I don't get it, Why would anyone NOT want to issue a 1099, it reduces your income tax liability no?

  • @judiecampbell3737
    @judiecampbell3737 3 หลายเดือนก่อน

    Need 1099R

  • @Beijing131
    @Beijing131 5 หลายเดือนก่อน

    So confuse. 😢

  • @bernadettesison5979
    @bernadettesison5979 5 หลายเดือนก่อน

    Hello Mr. Maraj, Per business license thank you for the company channel of youtube self employed editors of C-class DMV registered limited of service subcontractors of definition etiology. #franchise of small business EDD 📩