Good Financial Reads: End of the Year Tax To-Dos
When Do I Need to Issue a 1099? [Video]
When do I need to issue a 1099 is a very common question by business owners. A 1099 states the payment you’ve made throughout the year to non-employees. It is a tax document that tells the IRS what you paid to the individual. This includes individuals such as contractors or subcontractors. A 1099 is simply a summary of payments. Once your total payments to an individual get over a certain threshold the IRS requires you to issue a 1099. Once it is over $600 for the year you need to issue a 1099. So, this is the dollar amount to answer the question of when do I need to issue a 1099?