Updated almost 10 years ago on . Most recent reply
Paying Contractors
Do you guys 1099 your workers? I have been paying cash to my workers and im startign to get worried come tax time.. anyone else have some advice regarding this? I track expenses in an excel sheet but im not sure if the IRS can come after me and how I can prove i actually spent the money....
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@Patricio P. while I don't know about the "Independent Contractors Agreement", I asked the question to my CPA since I wanted to have some work done. He said that I should issue 1099s to any contractor for work over the amount of $600. This was last year so I don't know if that amount changes. This came from wanting to hire painters for painting the interior/exterior and doing lite remodels. Those amounts are well above the $600 figure. In my conversation with him he said that the 1099 was to show I paid the contractor that will have to report the proceeds as income. Seems like it's just a way for the IRS to make sure contractors report income if that's the case. But also want to write off all my expenses so....