Do I need to report everyone that does work for me for taxes?

Question

I own a rental property. Do I need to get the tax data on everyone that does work for me for over $500? Even the yard guy?

My tax lady said that I needed to do 1099 for painters, etc.

This sounds silly.

What do I have to do?

Basit Siddiqi · Answer

@Jody R MasseyIf you are considered doing business - you are required to issue a 1099 to contractors that you paid over $600 during the year. You may not be required to do so if the contractor is a corporation.

You normally want to request information required to complete a 1099 such as name, address and social security number/EIN before they start the work. It may be difficult to obtain it afterwards.

Ultimately, the IRS is putting the onus on you to help the tax system work better so everyone reports their income.

Andrew B. · Answer

Technically you have to issue a 1099 to any contractor that you pay more than $600. (Assuming my memory of tax code is correct.) If you paid them in cash, no one would really know, but its technically breaking the law and then you have no receipt to write off the expense.

Do I need to report everyone that does work for me for taxes?

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