How to file contractor tax W-9?

Question

When it time to file contractor W-9,  do i include his credit card fee he add on to the bill in the total? or just what is in the contract?

Michael Plaks · Answer

@John Lee

If you paid by credit card, his income will be reported to the IRS by the credit card company on Form 1099-K. You don't need to report it on 1099-MISC.

See Page 2 of the instructions if you do not believe me.

John Lee · Answer

Ok thanks you

John Lee · Answer

Can you elaborate on how i don't have to file 1099- MISC for next year if I paid by credit card? The contractor send me the W-9 form to file tax for next year

Michael Plaks · Answer

Looks like you're asking about filing Form 1099-MISC. (W-9 is something completely different.)

The deadline for 2017 forms 1099-MISC was Jan 31. If you're talking about the work just completed, then it is too early to file 1099-MISC - they will be due next January.

You contractors is supposed to separately indicate the cost of labor. If he did, you will only report labor. If he did not separate labor - then you report the entire amount. Do not include his credit card fee either way.

You only need to create 1099-MISC if you paid by check or cash. If you paid by credit card or electronically - no need for 1099s.

If you do need 1099-MISC, then you will need the contractor's full name, address and Tax ID ("EIN"). This is what Form W-9 is for: to request this information from him.