Basics of 1099's
by tjp, Window Shopper
- Created: December 11, 2010, 1:57 pm
- Updated: January 31, 2011, 4:45 pm
I am getting ready for the year end and preparing the information for 1099s. I am getting confused on what I need to report on 1099s. I originally thought that any vendor (except for corporations) that we pay more than $600/yr should receive a 1099. I read the instructions of the 1099s and now believe that only services (labor) over $600/yr need a 1099. In other words, if we just purchased materials or equipment I should not send a 1099. I know rents and leased equipment are sent 1099 Misc under #1 blank. I have W-9s on all of our vendors.
The main reason I started looking into the instructions was to find out if the tax I paid on invoices were included in the amount reported on the 1099. Could anyone clear this up for me? I know this all is scheduled to change in 2012, but I just need to get it straightened out for 2010.
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