Good Financial Reads: End of the Year Tax To-Dos

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Good Financial Reads: End of the Year Tax To-Dos

Good Financial Reads: End of the Year Tax To-Dos

When Do I Need to Issue a 1099? [Video]

by Michelle Smalenberger, Financial Design Studio, Inc

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?

Source : https://blog.xyplanningnetwork.com/consumer-blog/good-financial-reads-end-of-the-year-tax-to-dos