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Level 2
posted Jan 11, 2020 10:54:57 AM

Am I required to issue them a 1099-misc form if they are an established company, not a freelancer, to do work for me?

I am a self-employed self-publisher, and I hired a major design firm to do some design work for me. I paid them a lot of money this past year. Do I have to issue them a 1099? The Turbotax rules say that you have to issue a 1099 to freelancers. I wouldn't consider this firm freelancers. Thoughts? thanks, TT

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1 Replies
Level 7
Jan 11, 2020 4:57:42 PM

You are correct that the company does not receive a 1099-MISC.  They probably gave you an invoice when the work for you was finished and you paid it.  You PURCHASED a service from.  IRS requires that a 1099-MISC  be given to independent or unincorporated contractors.