1099s for Contractors and Vendors
Автор: Montgomery.CPA-TV
Загружено: 2026-01-08
Просмотров: 41
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If your business paid $600 or more to a vendor during the year, you may be required to issue a Form 1099-NEC, and those must be postmarked by January 31.
In general, 1099s apply to payments for services, not for tangible goods. And they typically apply when you pay individuals or non-corporate businesses.
However, this is where people get tripped up.
Even if a vendor is an LLC or a corporation, you still must issue a 1099 if they’re an attorney or a medical provider. Those are required exceptions.
Also, how you paid matters.
If you paid a vendor by credit card, debit card, or payment apps like PayPal, Stripe, or Square, you do not issue a 1099. Those payments are reported separately by the processor.
Rent is another common mistake.
Rent does require reporting, but it goes on Form 1099-MISC, not the 1099-NEC.
The best practice is to collect a W-9 before you pay a vendor so you know whether a 1099 is required.
If you’re unsure whether you need to issue a 1099, now is the time to address it—because IRS penalties for missed 1099s add up quickly.
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