Investor · Gig Harbor, WA · Member since 2013 · 9 posts · 2 votes
I just had a new roof put on a duplex. Cost is $10K+
When I do my federal taxes on TurboTax it seems to be an "option" as to whether I send the contractor a 1099 form. What do others do? Do you send your contractor a 1099 or not?
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
12y
yes. and to every other contractor that did over $600-750 of business with. You have to mail them by the 31st of January. The box on the tax form is just a poke in the eye by the IRS asking if you will jump when they say do. The 1099 form is another job that the federal government requires you to do because "You didn't build that". It is you telling the IRS to look at the contractor because they might not report their income. Even though the contractor is probably doing countless jobs for individuals not required to send 1099's. They are a complete waste of time.
Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
12y
@Rich Thomas Yes, if it is not a corporation. Any time you pay a person over $600 you are supposed to 1099 them. In order to do this you'll need to have them fill out a IRS W-9 form which you can find here.
Next time explain to your contractors that you will need to 1099 them and get a W-9 from them before you pay them. Some contractors expect to work under the table. The taxes that they should have paid could come back to you if you do not 1099 them.