1099

2 replies
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Hi, I own a Hair Salon,S Corp. I have independent contractors Hair Stylists that rent booths from me. I, of course, have to pay the rent for my Salon, and I report the income I receive from booth rental on my business tax return. My Stylists keep telling me that when they file their personal taxes, they are advised by the Tax preparer that I am supposed to give them a 1099-? at the end of the year. I have never provided a 1099 because I do not pay them, so I'm confused and trying to get an answer that I can share with them that we will understand. Thx!!

TurboTax Home & Biz Windows

Bsch4477

Level 15

There’s no reason to give them a 1099 since you didn’t pay them anything. You could give them a receipt for their rent paid if they want documentation of their business expense.

DavidD66

Alumni - Intuit

Based on what you have stated, there is no reason for you to be sending the stylists who rent booths from you Forms 1099-MISC or 1099-NEC. What would you report? You don't pay them. Conversely, if the stylists pay you more than $600 per year, then they should be sending you a Form 1099-MISC, unless you are incorporated (not to be confused with a LLC).

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