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trtcmac
New Member

If i paid a family member to do some work do i need to do a 1099

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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11 Replies

If i paid a family member to do some work do i need to do a 1099

Was this amount you paid each of them less than $600?
trtcmac
New Member

If i paid a family member to do some work do i need to do a 1099

yes

If i paid a family member to do some work do i need to do a 1099

I added info below for you.  Please comment here if you need more help. Thank you!

If i paid a family member to do some work do i need to do a 1099

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"

trtcmac
New Member

If i paid a family member to do some work do i need to do a 1099

so under 600 doesn't require 1099?

If i paid a family member to do some work do i need to do a 1099

Correct.  Less than $600 per person does not require you to create a 1099 or W2.
Marilyn4
New Member

If i paid a family member to do some work do i need to do a 1099

So, what is the proper procedure if more than $600 is paid out?  

1099's ?   at least for the first time (year) this occurs?  


 

MaryK4
Expert Alumni

If i paid a family member to do some work do i need to do a 1099

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

@Marilyn4

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efremb
New Member

If i paid a family member to do some work do i need to do a 1099

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.

If i paid a family member to do some work do i need to do a 1099

$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.   

AN1971
New Member

If i paid a family member to do some work do i need to do a 1099

Yes, 

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