I hired an attorney to help put together a one time contract agreement template, do I need to send him a 1099 NEC if I paid more than $600 for that service?

[Mari_325]

I hired an attorney to help put together a one time contract agreement template, do I need to send him a 1099 NEC if I paid more than $600 for that service?

[DawnC]

Yes.  1099-MISC reports proceeds from settlements, but payments made to attorneys for services in the ordinary course of your business are reported in Box 1 of 1099-NEC

The following payments made to corporations generally must be reported on Form 1099-MISC.

• Medical and health care payments reported in box 6.

• Gross proceeds paid to an attorney reported in box 10. Are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example, as in a settlement agreement

• Substitute payments in lieu of dividends or tax-exempt interest reported in box 8.

Payments to attorneys. The term “attorney” includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of your trade or business are reportable in box 1 of Form 1099-NEC, under section 6041A(a)(1). 

[Mari_325]

Would it also apply if I made the payment with a credit card?

[AmyC]

Yes, the date the credit card was charged is considered the date paid.