1099’s – What You Should Know

Year end is right around the corner! Federal regulations require all 1099’s to be to the recipients and the government by 1/31/2020.

Who gets a 1099? The general requirement guidelines are as follows:

  • 1099-MISC:
    • Royalties of $10 or more
    • all other types of miscellaneous income of $600 or more including:
      • Rents- This typically includes rental payments if your business rents property (like real estate or equipment).
      • Services performed by someone who is not your employee- This is also referred to as “non-employee” compensation.
      • Prizes and awards- This applies to any prizes and/or contest winners your business has awarded.
      • Payments to an attorney- This includes payments made in the context of a legal settlement or any legal services given directly to a company.
  • 1099-R  – $10 or more
  • 1099-INT – $10 or more
  • 1099-DIV – $10 or more

Generally, payments to corporations are not reportable. However, you must report payments to corporations if they are for payment of attorneys’ fees (1099-MISC). 

Contact Huth Thompson LLP for help with your 1099 filing needs.