| Well, generally speaking the IRS states that the amount needs be equal or greater than $600 before you are required to issue a 1099 to someone!
If you issue a 1099 to someone, you are entitled to take a deduction from your taxable income to the extent of your 1099-Misc payments to outside contractors/consultants. This would tend to reduce your taxable income that is subject to both S/E tax and regular tax.
Last edited by TaxGuru : 01-04-2009 at 04:38 PM.
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