“Don’t let them fool ya. Or even try to school ya! Oh, no!” -Bob Marley
As you’ve probably heard 1099 forms are due this month and I know people who are still confused on who they should send them to.
Form 1099-NEC stands for “non-employee compensation” and the main recipients are individuals or businesses that provide services but they are not employees. Common examples are marketing firms, bookkeepers, attorneys, cleaning services, IT support, photographers, as well as a musician who plays in your shop and the college kid who helped you out when they were available during the summer.
Form 1099-MISC will still be used for rent payments and will be reported in box 1. So if you paid a landlord in 2020 you may need to give them a 1099-MISC! Most people forget about these.
There are some exceptions to the rules, the main one being Corporations. This includes S or C Corporations as well as LLC entities treated as a S or C Corporation. They will not receive 1099 forms.
However, the exception to the exception are law firms and legal services. Even as a corporation, they still must receive 1099s for their services.
So don’t let them fool ya! Makes sure you get a W-9 form and send a 1099 if they meet the criteria.
#ildertonbookkeepingllc #1099forms #2020taxes #smallbusiness #knowyourbusiness #1099vendors #1099rules #ildertonfamilyplaylist #1099MISC #1099NEC