Do You Need to File a 1099?

As a business owner, you may need to issue 1099 forms to certain vendors or contractors. Here’s a quick guide to help you determine when it’s required:

File a 1099-NEC if:

• You paid $600 or more during the year to a non-employee individual or business for services.
• The payment was made in cash, check, or direct deposit (not credit card or payment apps like PayPal or Venmo Business).

File a 1099-MISC if:

• You paid $600 or more in rent, prizes/awards, or attorney fees.
• You made royalty payments of $10 or more.

File a 1099-K (payment processors):

• The payment threshold for 2023 is $600 for goods and services transactions (lowered from the prior $20,000 threshold).

Who Doesn’t Need a 1099?

• Corporations (except attorneys).
• Payments for merchandise, utilities, or employee wages.

Need help with 1099 preparation or ensuring compliance? Contact us at Family Balanced Bookkeeping! We’ll make sure your forms are filed accurately and on time.

Let’s balance your books, so you can focus on growing your business!

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