The Lowdown on 1099’s

Oh, the joys of the end of the year and preparation for tax time! Today, let's take a quick look at 1099's and who gets them.

Vendors must meet the following criteria:

1. They provide a service, not products
2. They were paid more than $600 in the year
3. They are not a Corporation.
4. They were not paid with a credit card.

Most of these will be in Subcontractors/Contractors or Legal and Professional Services type accounts. Generally speaking, if you are unsure it's best to check in with the vendor and ask if they require a 1099--it's better to check than miss someone. You will need to get a W-9 which will provide their EIN, official business name as listed with the IRS, mailing address and email. The deadline to file these with the IRS is January 31, 2022. Your bookkeeper or accountant can file these for you and may have in the past. Be sure to check in to see what they need from you. For all of Missoula Bookkeeper's current clients, we are handling this for you and will be getting in touch to get the necessary information.

It can be SO HARD to pin people down this time of year, so get on this project ASAP to save yourself a lot of stress come tax time!