Your wife will file a schedule C attached to your tax return that lists all of her business income and expenses. She must have accurate records of her income and expenses and report them even if she does not get tax reporting paperwork. She will probably not get any 1099s because no one who pays her for her services would be required to give her one.
One of her business expenses that she can deduct on schedule C is rent she pays to the salon owner or landlord. If the amount is more than $600 per year, your wife must issue a 1099-MISC to the landlord in the amount of the rent.
She can use TurboTax quick employer forms to e-file the 1099 – MISC. This will take care of the transmitting the official copy to the IRS as well as give an electronic copy or a copy that you can print for the landlord and for your wife’s records. There are several other online websites that can e-file a 1099 form for about $5.
To issue a 1099 on paper, she would have to obtain the official five part paper form from the IRS, fill it out by hand or with a typewriter, and mail one copy to the IRS and one copy to the landlord. E-filing is much more efficient.
