Do you have to issue a 1099-Misc for a payment made with a credit card?

[DeniseF1]

If you paid your contractors via credit card or PayPal, those entities will report the income on a Form 1099-K.   In short, you are required to issue Forms 1099-MISC if you paid a contractor via cash, check, or a bank’s quick-transfer system (e.g., Chase QuickPay).

[jesserobertovera]

The company I work for paid by credit card.  Must I produce the 1099-K; or, will the credit card company provide that 1099-K?

[VolvoGirl]

They paid you by credit card?   You do not prepare the 1099K.  You receive a 1099K.  Or they might give you a 1099Misc.  

How do they pay you by credit card?  Do they put the payment onto your credit card?  Or they used their credit card and gave you cash or what?

[TanyaMM]

How does your credit card company know WHO to send 1099s to? I haven't given them that information.  Just curious.  Thanks!~

[AlanT222]

When the vendor agrees to accept credit card payments, the vendor gives the credit card processor its information such as name, address, and tax id number.  So it is not your credit card company that issues the 1099k, it is the credit card processor that issues the statement.  

[Mare612]

If you paid your contractors via debit card do you have to issue a 1099?

[LeonardS]

Yes, you have to issue your contractors a 1099-MISC for your payments to them if you paid them more than $600.  How you paid them does not remove the requirement to file Form 1099-MISC

[georgen0w]

This contradicts what DeniseF1 said and is posted as the best answer. She said "If you paid your contractors via credit card or PayPal, those entities will report the income on a Form 1099-K.   In short, you are required to issue Forms 1099-MISC if you paid a contractor via cash, check, or a bank’s quick-transfer system (e.g., Chase QuickPay)."

Which is true?

[RobertG]

From 2020 Instructions for Forms 1099-MISC, page 2.

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC.

Persons receiving credit card payments and payments from other providers like PayPal are already having those payments reported.

2020 Instructions for Forms 1099-MISC

This seems to support @DeniseF1

@george0w

[sem95819]

Sometimes my client pays their vendor through PayPal and sometimes they pay that same vendor by check.

How to deal with year-end 1099 misc?

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[Critter]

@sem95819 

You don't have to 1099 vendors where you are buying goods from them and getting a receipt.  You issue 1099 forms to unincorporated contractors who do labor for your business.  If they are paying the sub contractor by 2 different means of payment then they need to keep good records so they know what amount needs to be issued a 1099 and which do not.  If you use a good bookkeeping program like quickbooks you can set up classes to differentiate the payments. 

[MSD11_20]

Hi, what if you paid the contractor in PayPal as a friend or family? Meaning, we paid the PayPal charges. Will PayPal also report that to the IRS?

[Mike9241]

that's a question for PayPal

[sem95819]

Thanks. I understand about the vendors and keeping track of how they are paid. I now have a client who pays a professional consultant via a third party gateway. That gateway says no 1099K needed, so I assume I will use a 1099NEC.