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Stephanie B.
Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience:  MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
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Im not an LLC. I dont have a company. Im a freelancer who

Resolved Question:

I'm not an LLC. I don't have a company. I'm a freelancer who has hired other freelancers for a few jobs I had. I paid a few of them more than $600. Do I have to issue them 1099's? If not, can I deduct them from them 1099 I will receive from my clients?
Submitted: 5 years ago.
Category: Tax
Expert:  Stephanie B. replied 5 years ago.

Stephanie B. :


Thank you for using Just Answer.


If you pay someone $600 or more in your trade or business, which you do not have to be an LLC or a “company”, you are required to send them a 1099 if they are not incorporated. You are allowed to take the deductions if they are necessary and ordinary in your trade or business regardless of if you send them a 1099. The issue is the IRS has increased their penalties for not filing 1099s when you should have. The penalty currently is up to $100 per information return.


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