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ddmurrow
New Member

gave my sister $1000

If I gave my sister $1000, does that does send a red flag to the IRS to audit me?  Confused about the new $600 1099 ruling.  Thank you

1 Best answer

Accepted Solutions
tagteam
Level 15

gave my sister $1000

No, that would be a gift and one which does not need to be reported.

 

The Form 1099 variants are for trade and business reporting only.

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5 Replies
VolvoGirl
Level 15

gave my sister $1000

What did you give it to her for?  For pay ?  You do not report gifts given or received on your tax return.  If you paid her for your business you need to give her a 1099NEC.  

tagteam
Level 15

gave my sister $1000

No, that would be a gift and one which does not need to be reported.

 

The Form 1099 variants are for trade and business reporting only.

ddmurrow
New Member

gave my sister $1000

Ok, thank you!  It was a gift to have a nice vacation.

ddmurrow
New Member

gave my sister $1000

But, we did pay a contractor $4000 for work in our garage.  Do we have to provide a 1099 to him (I don't know how to do that).    Shouldn't he take care of that through his business?

VolvoGirl
Level 15

gave my sister $1000

No, individuals do not give out 1099 forms.  Only if you have a business or self employment.  Only businesses give their contractors a 1099.  

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