I paid 2 family members cash to do office work for me. do I need to do a 1099 in order to claim this write off for my business
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No 1099 or W2 is required if you paid each contractor/person less than $600.
Yes, If you paid an independent contractor or freelancer $600 or
more for services on a project and did not withhold any type of taxes, you are
required to send that person, and the IRS, a Form 1099-MISC.
To enter the cost of labor you paid out:
Go to your Business that you want to work on,
>Business Expenses
>Other Common Business Expenses
>Contract Labor
The area you need to be at to create W2's and 1099's for your employees is directly above the box where you add your labor amounts.
Click on Contract Labor and on the very first page will be a sentence, "Create and file W2's and 1099's, start here"
So, what is the proper procedure if more than $600 is paid out?
1099's ? at least for the first time (year) this occurs?
In the course of your business, if you pay more than $600 to any independent contractor each year. The 1099-MISC is due January 31st and is filed with the Form 1096.
See Reporting Payments to Independent Contractors
If I read the article correctly, It is UNDER $600 A YEAR. Is this right? Not under 600 every time I ask for their help.
$600 paid is for the total for the year. Not each time or job. If you pay anyone 600 or more for the whole year you have to give them a 1099NEC.
Yes,
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