I'm a Remodeler, and paid $1000+ to an Electrical Contractor, and the same to an HVAC Contractor. Do I need to give them 1099's?

[Bill9]

The job was a larger one than usual and I needed Licensed Contractors for the Electric and HVAC work.  I got bids from and hired two companies to do the work.  When finished, I paid the companies by check, written out to their company names.  The checks were for over $1000 each.  Do I need to issue 1099-MISC forms to these companies?

[KittyM · Accepted solution]

Yes, you need to issue them a form 1099-MISC unless the company is a corporation.  When in doubt, issue a form as the penalty can be as much as $530 for each 1099-MISC you should have filed, but didn't.  

The due date for form 1099-MISC is January 31, 2018.  You can fill them out using Intuit's Payroll Services at the link below:

efile 1099s

[KittyM]

@Bill Or you can use the TurboTax Quick Employer Forms:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1900677-what-is-quick-employer-forms">https://ttlc.intuit.com/ques...>

[bizowner2]

What if an LLC pays an individual over $600 for electricity use? Does the individual get a 1099?

[VictoriaD75]

As a general rule, you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards or other income payments. You don't need to issue 1099s for payments made for personal purposes.

As electricity would be considered a service, you should issue a 1099-MISC.

Am I required to file a 1099?