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1099 NEC who qualifies

Looking for assistance as this is the first year I will be filing 1099 NECs for all of my contractors. I was curious to know who all I will need to provide one of these to. 

 

Do I provide the following companies with a 1099 NEC?

  • Drywall Crew provides both materials and labor (are both of these items included in the 1099 NEC)
  • Local Milling Company only provides raw materials that I utilize to complete the homes I am building. They provide no services. 
  • Large National Chain Store where I buy most of my construction materials. They also provide a delivery service of products but do not provide any other services. 

Thanks for your time!

 

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2 Replies

1099 NEC who qualifies

it's a little more complicated. 1099-NEC would be issued to individuals but payments to non-individuals, when required, are reported on 1099-MISC.

to avoid possible penalties, you should obtain form w-9 from everyone or company you hire and certainly before you make the first payment.  you are not required to confirm the accuracy of the w-9 info.

https://www.irs.gov/pub/irs-pdf/fw9.pdf 

 

Some payments do not have to be reported on
Form 1099-MISC, although they may be taxable to the
recipient. Payments for which a Form 1099-MISC is not
required include all of the following. (
• Generally, payments to a corporation (including a limited
liability company (LLC) that is treated as a C or S
corporation). 
• Payments for merchandise, telegrams, telephone, freight,
storage, and similar items.

 

 

since other types of payments may need to be reported see the instructions for 1099-MISC and 1099-NEC.

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf 

 

1099 NEC who qualifies

Do I provide the following companies with a 1099 NEC?

  • Drywall Crew provides both materials and labor (are both of these items included in the 1099 NEC) Maybe ... if they are incorporated then NO otherwise possibly yes ... review the information on the W-9 & 1099-NEC already provided.

 

  • Local Milling Company only provides raw materials that I utilize to complete the homes I am building. They provide no services.   NO ... you get receipts for this. 

 

  • Large National Chain Store where I buy most of my construction materials. They also provide a delivery service of products but do not provide any other services.   NO ... you get receipts for this. 
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