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1099

I'm an independent contractor and I built a home for a man and he says he is suppossed to give me a 1099. Is he? I keep track of all my earnings and pay self employment tax at the end of the year(along with the rest of the taxes). I've never had anyone that I've done work for other than if I was a sub to give me a 1099. Please let me know or tell me how I can find this out. This gentleman has cheated me all along and still has not fully paid me, which makes me think he is still at it. Thank you.

Zip Code: Here2Play333@aol.com

Re: 1099

The rules state that if someone pays an unincorporated entity more than $600 during the year, they are supposed to issue a 1099-Misc form to that person, and send a copy to the IRS. (Lawyers and healthcare providers are supposed to get 1099s as well even if they are incorporated.)

If the person will be reporting the correct amount, and you report all your income to the IRS, then I don't think it's an issue.

He's obligated to send you a copy of the 1099 he prepares. So make sure that he doesn't overstate the income being reported to the government.

It appears that this "problem" customer is just trying to stick it to you a little - just in case you had any thoughts of not paying taxes on the money he paid to you.

Zip Code: cpa@mdtaxes.com