If you file Schedule C (Business) or Schedule E (Real Estate), you’re responsible for issuing 1099s for certain payments. The IRS treats these filings the same as larger businesses, so it’s essential to understand the requirements.
Why Issue a 1099?
- The IRS uses 1099s to track income reported by recipients.
- Not issuing 1099s when required can lead to penalties.
Do You Need to Issue a 1099?
You must issue a 1099 if:
- You paid $600 or more in 2024 for services to an individual, single-member LLC, or partnership.
- Payments were for business or real estate services, not personal expenses.
Key Reminders for Schedule C/E Filers
- Use W-9 forms to verify recipient details.
- Exclude payments made through credit cards or third-party platforms (e.g., PayPal).
- Submit accurate information early to meet the January 31st deadline.
How We Can Help
We’re here to make the process simple and stress-free. Contact us for assistance with 1099 preparation, and let’s ensure your compliance this tax season.