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Old 07-28-2008, 07:14 PM
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Report Expenses Related To 1099 Income

I receive 1099 income but most of that is paid out to others for their labor. I am just an individual. Can I 1099 the other individuals for their work, or do I have to take on the full amount on my taxes. If that's the case, what would be required of me in order to have the ability to 1099 others for my 1099 income?



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Old 07-29-2008, 10:42 AM
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Report Expenses Related To 1099 Income.

Yes! You can issue 1099-Misc's to individuals who perform consulting or contracting work for you.

In order to do that you have to issue them 1099-Misc and send a copy of the 1099-Misc to each individual by January 31, 2009 and you must send a Form 1098 (Annual Transmittal Letter) along with a Red Copy of the 1099-Misc sent to each individual to the IRS prior to Feb 28th, 2009.

I would also consult an Accountant to make you sure this filing is done in compliance with the IRS rules.

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Old 12-30-2008, 05:52 PM
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Does the amount NEED to be over $600 before you can 1099 someone, or is that just the level at which you are required to 1099 someone? If I 1099 someone, does that amount act as a deduction from my taxable income since it was not earned by me but paid to me?


Last edited by n8scstm : 12-30-2008 at 07:30 PM.


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Old 01-04-2009, 05:31 PM
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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.

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Last edited by TaxGuru : 01-04-2009 at 05:38 PM.


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