Im A Sub Receiving 1099's From The GC's Im Confused And Need Help.

kc brick layer

im new in business this last year and i work as a subcontractor to many gc's. i have received a few 1099's from some of these gc's. i thought since i give them a w-9 that i shouldnt get 1099's. what am i soposed to do with the 1099's?

brzelt

It just proves that they paid you and that money should show as a deposit
for your business somewhere in your records.
No big deal as they paid and you deposited...right? All the taxes are figured
in the end anyway. Or did they withhold taxes?


W-9 has only to do with the gc's or anyone you have been working for.

precisionbuild

Take them to your accountant to do your taxes with them, or use them to do your own taxes.

A W-9 is filled out so you can be 1099'ed.

Brock

and the other copies go straight to the IRS so make sure you wait and get"all" of the 1099's before you file your taxes. i don't want you to get locked up.




.

SLSTech

In addition to what Brock said & some of the others above...

Any amount paid out over $600 by a GC to you requires a 1099

They have until Jan 31st to get them in mail

I would wait at least a week (Feb 6th or 7th) before going to your tax guy, unless you are positive you got them all

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Bender

My quickbooks is telling me the threshold for 1099's is higher this year.
EDIT: I'm not convinced this is true

SLSTech

IRS site still shows $600 http://www.irs.gov/efile/article/0,,id=98114,00.html

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Bender

Dang, and I had 10,000 employees making $601.00 last year



Now I wonder wtf is wrong in my books

thom

Incorporate and they won't 1099 you

D.A.S.Anthony

Ask for cash! SHHHHHHH!!!!!!!

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Anthony
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www.dasassociates.com Building from Greenwich to Fairfield and Westchester Counties.

SLSTech

SHHHHHHH!!!!! Simple Jack may be around - don't get him started again

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Alabama Full Service Remodeling, Renovation, and Preservation by SLS Construction
Certified Energy Efficiency Audits, Ratings, Modeling, Verifications, & Consulting
Residential, Commercial, & Industrial Infrared Thermography Scans

BattleRidge

When I started as a sub I worked for probably 15 contractors and I only got like 3 1099s. Is that a bad thing? I claimed everything though.

dubz

It's nothing to you as a sub. The contractor can be fined 60$ each for not sending them out, (according to my tax guy years ago).

Bodger

I caught an audit three years ago for a previous tax year. I had not sent 1099's to all of the subs, I was lazy about getting that done. I did some, but not all.
I had invoice receipts and cancelled checks proving that I had paid these guys, but that wasn't enough for the IRS auditor. He threatened to disallow those payments and count them as income for me because I had not sent in the 1099's on all the subs I paid that weren't incorporated.

In the end, I paid penalties for not sending the forms, and he allowed the sub costs not to be counted as income. I got dinged $3500 in that audit on other matters.

I don't know if his threats were legit, but it was a while before I took a solid crap.
Now, religiously I send them thangs.

Aframe

If you claimed all the income you are all set.

Buck25

I don't get the 1099 thing; just found out about it a few days ago. I have a cancelled check and an invoice from the sub, so why the hell do I need to essentially keep the subs' books for the IRS?

precisionbuild

You're kidding, right? You're not keeping his books, you are keeping yours. And you are giving the IRS a way to collect their money.

The reason you send the sub a copy is so he can compare it to his records so that you are not telling the IRS you paid him more than you did.

Buck25

I understand all that but then why don't I need to 1099 Home Depot? I have a receipt the same way I have a "receipt" from my sub?

I'm just trying to figure out the logic of the system. The sub should be keeping his books and entering that payment as income; so then it's my responsibility to keep the sub honest by reporting his income to the IRS. I just don't get the difference between writing a check to a sub or a vendor or the insurance company.

precisionbuild

They are incorporated.

Tom Struble

isnt that part of being a GC?