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Old 04-05-2012, 02:22 PM
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Re: if need 1099, some <600 when deduct cost of withheld money for shared music demo

Hi,
I had a band last year. Some of my band members made >$600. We recorded a demo last year and as they wished, I deducted the cost of the demo from their pay for a few of the gigs. With that deduction, most of them made less than $600. Do they need 1099s if they therefore fall <$600 threshold?

Thanks a lot.
Alan



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Old 04-06-2012, 12:48 AM
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“ With that deduction, most of them made less than $600. Do they need 1099s if they therefore fall <$600 threshold?”----> The IRS considers a worker who receives Form 1099 as a self-employed person. Form 1099 is an information statement detailing a worker's earnings for tax reporting purposes. If the band worked for you as an independent contractor, you must issue a Form 1099 to each member of the band as long as you pay more than $600 and the check is made out to them. The IRS wants to be sure that the bands you pay report and pay the proper income tax on these earnings. Accordingly, you are required to issue a form 1099 s to any band, musician, sound person, etc. to whom you pay (with some exceptions) more than $600 in any given year.



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Old 04-06-2012, 10:49 AM
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Thank you very much for the explanation - very helpful.
Alan



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