1099

Forum|Forum|5 years ago
March 4, 2021
2 replies
15 views

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

Level 15

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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