1099-MISC or 1099-NEC

Forum|Forum|3 years ago
January 19, 2023
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I have paid compensation work performed by LLC (NON-corporation) construction contractors in 2022. Which form must I file: 1099 Misc, or 1099 NEC, or do I need to file anything?

Opus 17

Employee

You are a business, and people worked for you? Or are you a subcontractor asking how to file a tax return?

TxpyrAuthor

We are a business, owning rental real estate. Contractors performed construction on our real estate.

Opus 17

Employee

@Txpyr wrote:

We are a business, owning rental real estate. Contractors performed construction on our real estate.

If you pay more than $600 in a year for services performed for your business, you must issue a 1099-NEC in most cases. Start by issuing each vendor a W-9 form to report their tax number. (You shouldn't agree to pay anyone until you get the form so you don't have problems later.)

https://www.irs.gov/pub/irs-pdf/fw9.pdf

If the company indicates they are an S- or C-corporation, you don't issue a 1099-NEC. You do if they indicate they are a sole proprietor, single member LLC, partnership, or other LLC that is not designated as an S or C corp.