To clarify, are you asking if you have to issue a Form 1099-NEC to contractors you have paid or do you have to report Forms 1099-NEC issued on your own tax return?
You are engaged in a trade or business if you operate for gain or profit. If you are a landlord, then you are engaged in business to make a profit.
Per IRS requirements, if you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business.
File Form 1099-NEC for each person in the course of your business to whom you have paid the following during the year at least $600 in:
- Services performed by someone who is not your employee; (including parts and materials) (box 1); or
- Payments to an attorney (box 1).
You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
If the following four conditions are met, you must generally report a payment as NEC.
- You made the payment to someone who is not your employee.
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, estate, or, in some cases, a corporation.
- You made payments to the payee of at least $600 during the year.
Report on Form 1099-NEC only when payments are made in the course of your trade or business. Personal payments are not reportable.
You would issue them per contractor (each contractor you have paid) for the tax year in question.
Payments made through Venmo are considered income to the contractor you paid.
Click here for instructions for 1099-NEC.
Click here for additional IRS information regarding reporting payments to Independent Contractors
Click here for what happens if you forget to file a Form 1099 on your tax return.
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